Your divorce will impact virtually every aspect of your life, especially your business. If you and your soon-to-be-ex-spouse co-own a business, the separation becomes more complex. Not only must you figure out your emotions and personal finances, but the future of your company is at stake.
While you may feel like there is no way your business will survive, it is possible. Here are several guidelines for dealing with your business during divorce.
Get a collaborative divorce
Divorcing via litigation can sometimes bring out the worst in couples. The adversarial environment of a courtroom may only make it more difficult to divide your business in a sensible and healthy way. Thankfully, you can divorce with a nonconfrontational method called collaborative divorce. This is an effective way to keep emotions and family issues out of the process of seeking a solution.
Another option for peacefully resolving your business concerns is mediation. The goal of mediating your divorce is to reach a mutually beneficial agreement. Mediation is all about respect and finding out what works for both parties. This helps you keep a steady mind when negotiating what happens to the business.
Hire a valuator
One of the most complicated aspects of dividing a business is figuring out how much it is worth. This is why you should rely on a valuation expert to come up with a solid number. Once you have a third party figure out the value of your business, you can move forward with negotiating a favorable outcome.
Keep your options open
Do not make the mistake of exploring only one option. You have a lot of routes to take. One spouse can buy the other one out, you can co-own the business together or you can sell it and split the net proceeds. Consider the benefits and drawbacks of each option before you make up your mind.