Divorcing couples who jointly own a Florida business often struggle to keep the doors open after they split. It is an unfortunate fact that many businesses can't weather the storm of its co-founders' divorce.
But there are ways to prevent your business from going belly-up when you file your petition to divorce in the Tennessee courts. Below are some tips for those business owners who find themselves on the brink of divorce.
Here, failing to plan can be planning to fail. Executing prenuptial or postnuptial agreements that detail how the business will be divided in divorce can save a lot of time, money and heartache. Also important to include are buy-sell and shareholder agreements.
Hire a business valuator
Professional business valuators can ensure that all parties know the true value of their business, including its debts and assets. Couples can save money by pooling their funds to hire an independent business valuation firm.
Prepare your business for its post-divorce life
If your spouse did all the hiring and firing and other management duties while you focused solely on acquiring new accounts, you will likely need to hire someone to fill that role. Some divorced spouses can continue running their businesses together after they split, but this is the exception to the rule.
No matter at what point you find yourself contemplating divorce, both you and your spouse will have some hard decisions to make. Learning all that you can about the effect the divorce could have on your jointly owned business can better prepare you for both the immediate future and beyond.