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How the business of divorce can affect your company

| Aug 13, 2020 | High Asset Divorce |

Getting a divorce? When you own a business, a divorce can ultimately affect your company in a lot of different ways. Even if you owned the business prior to your marriage or your spouse was never involved in its operations, they may have some entitlement to your business when the marital assets are split.

While you may be wishing right now that you had the foresight to ask for a prenuptial agreement or got a postnuptial one before the business developed into what it is today, the reality is that it’s time to focus on what happens next. Here are some things to keep in mind:

Divorce is the end of a business relationship, not just a romance

Marriage may be mostly about attraction and love these days, but divorce is really all about your financial situation, more than anything else. The actual process of divorce revolves heavily around defining what is (and isn’t) considered marital assets and debts, and dividing them up.

In this respect, your business is nothing more than a potential asset or debt that may need to be divided. You may have to divert significant amounts of time and resources into things like gathering paperwork to comply with document requests and accommodating whatever professionals are doing a valuation of the business. 

Divorce can deeply disrupt your company’s operations

You may get swept up in court appearances, appointments with your attorney and more. The emotional impact of your divorce may also have you preoccupied in a way that makes it hard for you to stay focused on your business. If your spouse was involved in the business, some of your employees may take sides. Others may abruptly quit if they’re worried the company won’t survive your marital split.

The best way to protect your company (and your personal interests) is to start discussing the details of your situation with an experienced advocate as soon as you can. That way, you can make decisions based on specifics, not guesswork.

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