The complications most couples face when getting divorced usually involve money. A survey by Forbes in 2016 found that out of the 1,000 participants, 78% cited disagreements about money as the main reason for their divorce. Furthermore, a study by the University of Virginia found that divorcees who had mediated their divorce settlements reported lower levels of stress and anxiety than those who had gone to court.
These statistics underscore the importance of financial preparation when getting divorced. Both parties need to have a clear understanding of their finances, and they should devise a plan for how they will handle money disagreements in the future. This may include splitting all assets evenly, setting up a joint bank account, or agreeing to consult with one another before making large purchases.
It’s also important to remember that divorce is not just about money. It can be emotionally draining and complicated as well. If you are getting divorced, seeking out help is vital, especially when your business becomes part of the equation. Here are a few tips when dealing with that valuable asset during the divorce.
Determine the Primary Owner
The first thing you’ll need to do is determine the business’s primary owner. If you are the direct owner, then you’ll need to take some time to think about what you want to do with the company. You may want to keep it and run it yourself, sell it, or give it to your spouse as part of the divorce settlement. If you’re not the primary owner, you’ll need to negotiate with your spouse about what will happen to the business.
Most businesses are split assets between divorcing couples. Each party gets a portion of the business based on their contribution. The primary owner may get a larger share. Still, it’s essential to remember that the other spouse may have contributed differently, such as by taking care of the home and children while the primary owner built the business.
Determining its value is critical in deciding how to split the business. An appraiser can help you determine the company’s fair market value to create a basis for negotiations. Once you have this number, you can start negotiating with your spouse about how to divide up the assets.
Think About the Future
When going through a divorce, thinking about your future is essential. This includes your financial future and your business. You’ll need to make sure you have a solid plan for how you will continue to run your business after the divorce.
You may also need to consider what will happen to your business if you remarry. If you remarry, your new spouse may want to be involved in the industry, or you may decide to sell it and split the proceeds. There are many options, so it’s crucial to consider what will work best for you in the long run.
Get Help From a Lawyer
When you’re getting divorced, it’s crucial to have a lawyer on your side. A lawyer can help you understand the legal process and make sure that your rights are protected. If your business is part of the divorce, a lawyer can also help you negotiate with your spouse about how to divide the assets.
Getting a divorce lawyer specializing in business law will be necessary to protect your interests as a business owner during the divorce. This lawyer can help you understand the process and ensure your business is valued correctly.
Prepare for the Worst
No one likes to think about the worst-case scenario, but it’s essential to stay prepared. This is especially true when dealing with a valuable asset like a business. If you cannot agree with your spouse about what will happen to the company, you may have to go to court.
If you have to go to court, you must remain prepared. You’ll need to hire a lawyer and gather all of the documents related to your business. This includes financial statements, tax returns, and anything else that will show the value of your business.
It would help if you also were prepared to talk about what you want to do with the business in the future. This includes your plans for running, selling, or giving it to your spouse. Be prepared to explain why you think this is the best option for both of you.
Being prepared can increase your chances of getting a fair outcome in court.
Final Thoughts
Divorce is never easy, but it can be challenging when your business is involved. Following these tips can make the process a little bit easier. Remember to seek help from a lawyer, financial advisor, or therapist if needed. These professionals can help you navigate the divorce process and protect your interests.
