Running a business is often time-consuming even when things are running smoothly, but so is getting a divorce. Putting these two things together can have negative consequences for both, if business owners aren’t careful. Even small changes to a company can add up to a significant overall impact.
Fortunately, experts say there are ways to minimize the negative impacts that divorce might have on a business. If you own a business here in Illinois, you may wonder what your business will look like after divorce. Knowing what to expect may make all the difference.
How might divorce affect my business?
First, it’s important to understand the ways a divorce can impact your business. Getting a divorce requires a lot of time and attention, meaning that you may have to divide your focus. If any employees assist you with assembly-needed documentation or business valuation, that person’s split focus can also become problematic for the company, especially if he or she has to take time away from normal work duties.
Other potential problems arise when both you and your spouse own stock or partnership in the company, whether that happens before divorce ever enters the picture or as a result of a divorce agreement. In extreme cases, you may have to dissolve your business due to divorce. Even if that doesn’t happen, divorce might impact your company’s ability to serve its customers, jeopardizing that precious relationship.
How do I prevent my divorce from affecting my business?
The easiest way to avoid all of this is by having a pre- or postnuptial agreement created long before divorce happens. They can outline exactly how you and your spouse will divide your business, if at all. If that isn’t an option, you can still ensure that you have detailed accurate financial records. Utilizing time-management skills and separating business and divorce tasks will also make a positive difference. If you have to involve employees, be sure they have a detailed checklist of any documentation you need.
Your divorce doesn’t have to affect your business. One way to reduce that potential impact is by working with a family law attorney who understands your situation. It may be the best way for you to start your new life while caring for a company you’ve worked so hard to build.