Going through a divorce is never easy for both partners and when one of them owns a business, things can get even more difficult. However, it’s very important to keep the business together and make sure it maintains its value no matter what’s going on in your private life. If you’ve found yourself in this situation, you’re probably wondering how to keep your business together when your marriage is coming apart. This is why we came up with 5 tips that are guaranteed to help.
Address whether the business is a marital asset
One of the first things you need to do if you want to keep your business together while going through a divorce is figure out whether the business is a marital asset or not. This is determined by whether the business was started/bought before or during the marriage. If it was started/bought prior to the marriage, it means it’s not a marital asset. However, the other spouse still needs to be compensated for their efforts. It’s also a good idea to think about which assets you have besides your business. We’re talking about assets such as real estate and investments. Valuable assets like this can sometimes play a crucial role in negotiating a settlement with your partner.
Know how much your business is worth
Even though you won’t be selling your business, it’s still very important to know how much the company is worth. However, it’s important to note that you need to determine how much your business can be sold for rather than its optimal value. This is where you’ll need to bring in a local expert who’ll determine the value of your business for divorce purposes. There are experts all over Australia you can turn to when it comes to determining the value of your business. The sooner you determine how much your business is worth, the sooner you’ll be able to sit down with your lawyer and start thinking about what you should do next. And this brings us to our next point.
Find a good divorce lawyer
When going through a divorce, having a good divorce lawyer is an absolute must. However, this is even more important when you’re running a business and you don’t want it to lose value due to your divorce. A good way to start is to identify local lawyers you can turn to. Once you do that you can talk to each of them and narrow down your list to a few lawyers you might end up hiring. Just make sure the lawyer you opt for is based near you as you’ll be meeting them quite often. That said, if your business is based in Sydney, turning to divorce lawyers in Parramatta might be a good idea.
Structure a buyout
One of the things you can do to keep your business running without any obstacles when going through a divorce is buy the other spouse out. Talk to your spouse with the presence of your lawyers and see if they are ready to agree on a deal with payments based on your company’s revenue. Just bear in mind that you need to keep enough money to keep your company’s operations running. On the other hand, you can also offer your spouse cash in exchange for their part of the company. If you don’t have enough cash to go through with it, compensating it with other assets such as real estate and investments might work out for you.
Don’t change any of your business practices
It’s also important to mention that the last thing you want to do is change some of your business practices because you’re going through a divorce. You need your business to keep operating just like before if you want everything to work out well. You might be tempted to lower your salary to help your business keep together but bear in mind that divorces can get pretty expensive. Moreover, couples that went through a divorce usually can’t work together due to all the tension. Employees can also feel this tension which can only end up hurting your business more. So, if you’re thinking about working with your former spouse, it’s recommended that you consider a different solution.
Going through a divorce can be painful and the last thing you want to happen is to have your business lose its value due to the tension between you and your former spouse. That said, you need to remain calm and have your lawyer help you find the best possible solution for your company. If you’re struggling to come up with an agreement make sure you talk to your former spouse and discuss the long-term future of your business.