How to Divide Your Business During a Divorce
According to research, despite business divorce cases falling, 39% of marriages will end in divorce.
You and your partner have decided to go your separate ways, but you don’t want to let the business suffer.
Dividing a business during a divorce can be incredibly difficult, especially if you and your partner are unable to agree on how to do it.
But don’t worry. Keep reading as this guide will teach you how to divide your business daily and cleanly so that both of you can move on with minimal damage done.
We understand how difficult it can be when going through a divorce. But, if you or your spouse has already started talking about wanting out of the other’s company then it should be easy enough to get the ball rolling.
Decide Who Gets What
This is not a time to be overly sentimental about your business. If you want it then go for it, but if he/she wants it more than you do just let them have it.
Of course, there should be some type of basis for who gets what, so lay out some ground rules before talking to an attorney or accountant just in case.
The basis could be how much tax is paid on each asset, etc. Whatever works best depends on your situation. Also, make sure everything’s decided fairly because doing otherwise will only bring up bad feelings all over again.
No one wants that when they’re divorcing someone they once loved very much!
Talk to an Attorney
You’re going to have to talk to an attorney to straighten out all of the legalities. You don’t want the IRS thinking that the company belongs to you when it doesn’t.
This is because the IRS might go after both of you for tax evasion. Plus, what kind of business is worth fighting over anyway? Nothing!
Don’t let emotions get in the way when your spouse doesn’t feel as passionate about your business as you do.
Create a Schedule That Works
If you and your spouse are splitting everything down the middle then this shouldn’t be too difficult. But if not then create a schedule that works best for everyone involved.
Maybe he gets Mondays or Wednesdays while she gets Tuesdays or Thursdays. Just make sure that if one day is longer than the other that the time off compensates for it.
There’s nothing worse than being married to someone you used to love but now despise. Part of avoiding this situation is thinking long-term.
If you keep looking at things as a temporary fix then chances are one day both parties will stop caring again and willingness to work together will diminish even more.
If your relationship as husband and wife (or as husband and husband) was anything like your relationship as business partners, well let’s just say there wasn’t much reason for either of you committing!
If you want this divorce to work then it’s important not to look back with anger or sadness, but instead with hope for a more positive relationship in the future.
It’s always a good idea to talk to a business divorce attorney. Working with these lawyers will help simplify the divorce proceeding for you.
How to Deal With a Business Divorce
Business divorce can be a difficult and often contentious process, but with the right planning, it doesn’t have to be. If you’re considering splitting up your business, make sure to follow these steps.
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