Going through a divorce is a challenging time, but it’s even more complex if you share a business. Some people who own a family business and are going through a divorce may opt to sell or close the business. In some cases, one spouse may buy out the other’s share.
There’s another option available—operating the business together. People who choose this option need to ensure they fully understand what they’re getting into. These tips may be beneficial if you’re facing decisions about working with your ex to operate the family business after your marriage ends.
Personal and professional life must be separated
One of the most important things to remember if you’re in this position is to keep your personal life and your professional life separated. This isn’t always easy after the end of a romantic relationship, but it’s critical when you’re at work.
It may be best to set terms for how things will work when you or your ex starts dating again. Having a plan for handling new relationship partners at work functions, such as holiday parties, may be beneficial.
Clear terms must be defined
All terms related to the operation of the business must be clearly defined in writing. These include what each party is responsible for, so there’s limited overlap. It should also include monetary matters, such as how profits and expenses will be handled. Adding in dispute resolution methods is also beneficial.
Dealing with the family business during the divorce is only one part of the property division process. It’s critical that you take steps to protect your own interests throughout the divorce. Because there are serious decisions to make, it’s critical to use logic to determine what to do at each step of the process. It may be best to work with someone who’s familiar with these high-value cases so they can help you to learn the available options and decide how to move forward.
