A divorce affects nearly every aspect of a person’s life. If you are a business owner, your separation and divorce will have a significant effect on the future of your company. This fact especially holds true for businesses co-owned and co-operated by spouses who oversee every detail from marketing, creating and hiring to overseeing payroll.
A personal split does not necessarily also mean a professional split. But, in many cases, it does and cannot be avoided. But different outcomes are possible. For entrepreneurs who have devoted a great amount of time, passion and money to the challenges of building a company, salvaging the company or moving on are among the scenarios.
Sell, buy out or continue as is
Couples who co-own a business may experience extra stress in their lives. Why? Building a business takes a great amount of devotion and energy. And just think that the strains on a business also potentially lead to strains on the relationship and marriage.
If you are a business owner going through a divorce, here are some of the options to consider when deciding the future of the company:
- Sell the business: This option may be the most practical. Understandably, it will be difficult letting go of a business that you and your spouse created and built into a solid company that serves the neighborhood, city or region. You can walk away with some money that may help you fuel the creation of your next business venture.
- Buy out your soon-to-be former spouse: This move likely takes some extra work. You need to ensure a fair negotiation price and come to an agreement. In addition, to make an acquisition possible, you may have to take out additional business loans, seek other investors and even bring on a new partner.
- Maintain the business partnership: Do not rule out this possibility. Granted, it may be difficult at times working side-by-side with your former spouse. But remember, you will have to set aside the emotions and carry on with a company that you both believe in.
Solutions in divorce are not always ideal. A great amount of giving and taking and negotiating are necessary, especially in cases involving business owners and partners married to each other. Be realistic as to what you can do. That is the first step toward carrying on with a post-divorce life.