How divorce can affect your Illinois business

| Jun 24, 2021 | Divorce |

Whether you were already a business owner before you got married or became one alongside your spouse, owning a business has a significant impact on all aspects of your life. If your relationship does not last and you wind up filing for divorce, the opposite may also be true, meaning it will affect all areas of your life, including your business. If you have a prenuptial or post-nuptial agreement in place, it may help keep business-related stress to a minimum. 

Divorce proceedings take time and attention away from your business 

When you file for a divorce, it activates a legal process that requires your attention and participation. This means that you may have to appear in court, compile important documents that are relevant to your case, or meet with your spouse to negotiate terms for a fair settlement. Any and all of these issues may cause a disruption in the daily function of your business.  

Perhaps you or your spouse play a key role in the day-to-day function of your business. You might decide to resign from your position because of your divorce. This means someone would have to fill your shoes, which might necessitate hiring a new employee. On the other hand, you and your spouse might decide to keep working alongside each other after your divorce, which could either be a great success or a disaster.  

Your divorce could negatively affect your company’s stock value 

If you agree to divide your business assets by paying out shares of stock to your spouse in a divorce, it can have a significant impact on the company’s overall stock value. For instance, your ex might decide to sell the shares. It’s helpful to explore your options ahead of time because there may be a way to place restrictions on what your spouse can or can’t do with his or her shares.  

Shield your business from divorce-related stress 

Running a business is a rewarding yet challenging endeavor. Many business owners get divorced. If you do, it’s important to remember that your circumstances may be less stressful if you and your spouse agree from the start to keep divorce proceedings and business activities separate. For instance, you should avoid using business email to discuss your divorce. 

It’s also helpful to designate a specific block of time each day to handle divorce-related issues. The rest of the time, you can focus on your business. Finally, having a strong support network in place, including financial advisers, trusted business confidants and legal advocates, can help minimize the negative effect your divorce might have on your business.