Divorces are already hard, but what can be harder is when the assets are joint and you guys run some things together, like a business or something else. So, how do you get divorced when there is a business involved? You most certainly need a divorce lawyer for navigating this. Here is everything you need to know.
Divorce Tips For Spouses Who Have A Business Together
Get The Business Valued
The first thing you want to do when you’re on the brink of a divorce and own a business together is to get the business valued. This is really important, because even though you might think that your business costs something else, you still want to get it valued in the present time. This is going to give you a number that will be realistic and you will be able to tell how much the business costs, if you go ahead and decide to sell it.
Even if you don’t have any plans on selling the business, this step is crucial because when you file for a divorce, you want the legal team to know how much your business costs and what the revenue is. This is going to lead to a much cleaner path when you do go ahead and get separated.
Communication Is Key
Owning is a business as a couple is hard, and it’s just as hard to let it go when your marriage is on the rocks. Well, if you both don’t want to let go of the business, but can’t hold onto each other, then it is better that you go for the communication route and actually talk to the person you’re dealing with all of this stuff.
You want to have a long and very productive talk with your partner and spouse and figure out a way to make the business work while you’re both moving on with your respective lives. This is going to lead to a shift in perspective and you will see what the other person has to say.
You don’t want to say yes to everything. That’s not the point. The point is to figure out what you both have to do from this point forward and it’s going to be different for everyone.
Consider Selling The Business
If your business isn’t exactly booming and it was something you both started on a whim and now you’re at the edge of divorce, then you can consider selling the business and splitting the money in between you two. If you both have contributed equally to the business, then you’re also going to get equal shares and money when the business is sold. This is how things work.
If neither of you wants to continue your business, then you can definitely go for the option of selling it.
Co-Run It After Divorce
There is no hard and fast rule that you absolutely cannot run the business together once you’re divorced. Sure, it won’t be comfortable seeing the person who was a part of your life and half the reason your business is up and running, but if you guys can go your separate ways on good terms, then there is no reason for you to give up on your brainchild and let everything go. You guys have to be cordial if you want to keep the business standing.
The Control
The next thing you want to figure out is who controls what. There are lots of avenues of control when it comes to business. Some are the financial controls, some are the managerial controls, and some are the operational controls as well as controls that promote the business. This is why you want to figure out where you and your spouse stand and who has what authority.
The higher the authority, the more responsibility there is, and if they’re managing the finances, then that is a whole different ball game. So, you want your lawyer to know who does what in the business and what they’re in charge of.
Find A Middle Lane
This kind of goes in line with running the business together, but you want to figure out what you want to do when you’re divorced and how the business will be managed. The dynamic will be completely shifted. You guys are not married anymore, so obviously, there won’t be that level of blind trust in the relationship either.
It will be strictly professional, so you want to work through this awkwardness and figure out a way to run the business by managing things and talking out all of the weird steps where people tend to tiptoe.
The Division Of Revenue
Based on who has more control in the business and what one does, the division of the revenue won’t be a black and white, straight down the middle cut. It is going to be a process. If you both contribute to the business and both of you manage things together, then the splitting of the revenue will be the same.
But if there is a hierarchy in the business and one person is working under their spouse, then things aren’t so simple anymore. This is why you really need to make things work in this kind-of-complicated situation.
Hold Onto Professionalism
Yes, you might be getting divorced, but that doesn’t mean that the driving emotion will be anger and resentment. This is where you need to work on yourself and you need to figure things out on your own.
When you’re in business mode, you want to let go of all the anger and hatred for your spouse, if that was the reason why the divorce was or is so messy, and you want to stick to being professional. You don’t want anyone to see you breaking down or spouting insults at the other person, just because you’re hurt. This is where you want to be all-business and nothing else.
Company Comes First
Even though a divorce is hard, that doesn’t mean that you have to put your business or company on the line. It doesn’t matter if the two of you aren’t together. What you both don’t want is your anger and other volatile emotions to drain the company.
You might want to make bad decisions, you might want to deprive the other person of everything, but if that is hurting the company or business, then you need to step back and reflect on what you’re doing. It’s something that is really crucial to think about.
Make Smart Decisions
While you might still love and respect your spouse after divorce, that doesn’t mean that it has to cloud your decision-making. When it comes to business, it is cutthroat, and you want to make the best decisions for the business.
This is what you guys worked on and honestly, it might be your main stream of income, so if you’re not being diligent and careful when making proper business decisions, then you need to get a hold of yourself right this instant.
Conclusion
Divorces with joint businesses involved can be really hard to navigate through, but they are not all that impossible either. These tips will definitely help you out.
