If you and your spouse partner in a business, the division of a business venture because of divorce can be especially contentious. The assets and equity require additional attention to achieve an equitable split.
Whether you and your former mate plan to continue in business together or not, you may minimize your financial loss by applying the following principles.
Protect the value of the business
The National Center for Family and Marriage Research at Bowling Green University states that the financial impact of divorce can lead to a reported 21 to 45% drop in your standard of living.
Since both of you benefit from the success of the company, actions that damage the business reputation and brand create self-inflicted wounds. The firm’s success can provide capital to pivot into another opportunity and an attractive entry on a resume.
Resist the urge to force suppliers, customers or employees to take sides or offer advice. A mature and dignified demeanor amid a painful split does more to retain valuable connections than aggressively trying to win the court of public opinion. Constant negativity can drive treasured relationships away.
Evaluate your options patiently
In the heat of anger or frustration, rash decisions may seem practical. As with any other business endeavor, craft a written plan to guide you.
While working through the details, engage neutral professionals to ensure the firm’s financial and operational matters continue smoothly. Even in an area where one of you has substantial experience, an outside viewpoint can provide a grounded perspective to avert a reckless decision or accusations of impropriety.
The divorce process is delicate and nuanced, especially if the split involves business interests and considerable assets. Ensure you don’t risk additional financial challenges by navigating the course carefully.