Divorce is hard. It’s even more difficult if you and your spouse own a business together. If this is the case, you need to decide how to divide ownership of the company between yourselves, and you need to do so in a way that protects both your finances and your reputation. Here are some of the steps you should take:
1. Seek Legal Counsel
Divorce is a very emotional process. You are going through a major life change, and that can make you feel like your head is spinning. Remember: the best way to protect your business is by seeking the advice of an attorney before making any decisions and knowing about the legal process such as how long does a divorce take? or how can you keep your own benefit during this issue? This includes signing any documents, such as prenuptial agreements or separation agreements.
2. Create a List of Plans and Goals
The first step in protecting your business is to create a list of plans and goals, you may use the event calendar to help you plan what you have to do in each step. Next, set up your goals what do you want and need out of the divorce? What do you want to protect? What do you need to avoid?
It’s important that this list is accurate and comprehensive because it will dictate how much protection your businesses will require. You should also keep this document up-to-date as the divorce process progresses and changes arise.
- To protect your businesses, gather all documents related to them. This includes financial records, tax forms and medical information.
- Be sure to keep these documents in a safe place so they don’t get lost or accidentally thrown away during the divorce process. You’ll need these documents if you or your spouse wants to make a claim against the other person’s estate after he or she dies (which could be years from now).
3. Take Inventory of Your Assets
Now is the time to take a complete inventory of your assets. This includes all your business assets, personal assets, and real estate. You should also take stock of any debts you have—business debt, personal debt, or real estate debt.
It’s important that this list is accurate and complete so that you can negotiate fairly with your spouse during the divorce process. If there are things that need clarification or additional research is done on them (e.g., an investment account), be sure to make note of it in writing so that your ex-spouse does not contest its existence later on down the line.
4. Determine Ownership Percentage
To start, you’ll need to determine the ownership percentage. If you own the business together and have agreed on a 50/50 split, this will be easy. If not, it can get complicated. You should consult with a lawyer before moving forward so that your agreement is fair and enforceable by the court if necessary.
Once you’ve determined the ownership percentage, it’s time to create a marital agreement between both parties. This should include everything from how much each party contributes financially and what happens in case of death or divorce (if applicable). It’s important that both parties agree with all aspects included within this document before moving forward with negotiations; otherwise, things can get contentious very quickly!
5. Turn to Third Parties
Third parties can help you navigate the complexities of divorce and protect your business. A good accountant, for example, will help keep your finances in order and ensure that your company keeps on running smoothly. Likewise, a good business coach can help train you to reach new heights of success as an entrepreneur.
Your therapist can also be invaluable during this difficult time. Talking about your feelings with someone who’s trained to listen is one way to feel more confident about making decisions about how to proceed with the business.
Finally, it’s important not to forget about insurance agents! Divorce often brings big changes like selling or moving homes—and those kinds of things require careful consideration when it comes to protecting yourself financially from lawsuits or property damage caused by others’ negligence or malice toward you personally (or vice versa).
A divorce is a difficult time for any couple, but when you run a business together it can be especially complicated. However, with the right support and planning, you can protect your business through the divorce process. The most important thing to do before anything else is to seek legal counsel. A lawyer will be able to help you understand your rights and make sure you’re protected throughout this process. It’s also important to gather documents, create a list of goals, take inventory of assets and determine ownership percentage. Lastly, turn to third parties who can help handle finances or other matters so that neither spouse needs to deal with them directly during this stressful time.