Whether you’re currently in business with your soon-to-be ex-spouse, or your venture is your sole source of income, divorce can be an even more difficult time than for some. When it comes to the already messy process of divorcing, ensuring you handle your divorce correctly — for both yourself and your business — is essential. But it’s not as simple as just going into the paperwork with your eyes open; there are some things you should know, first, to get the best possible result.
What your divorce means for your business
So, what exactly does divorce mean for your business? It can vary. For entrepreneurs working in partnership with the person they are divorcing, the process may be entirely different from someone whose business is separate. But it isn’t as clear-cut as your venture directly being awarded to you. If your ex-spouse is determined to gain a piece of your enterprise, as settlement, then the waters start to become murky.
For entrepreneurs working in partnership with the person they are divorcing, the process may be entirely different from someone whose business is separate.
The first step to involving your business within your divorce — which often isn’t optional for entrepreneurs — is knowing the value of that business, both at present and based on its future growth and increase in value over time. For many in this position, the concept of their business as a ‘thing’ can be difficult, especially when it’s so closely tied to your identity or lifestyle. This is especially the case should you be partners in a venture where your ex-husband or wife may choose to buy you out, or be bought out.
Understanding the value of your business
As with any other assets in a divorce, it’s important to know the worth of your business. Taking stock of the worth and future potential of what you have is vital to ensuring buyout is possible, as well as making it easier to calculate the worth of what you have for the sake of divorce settlement. There are many different parts of estimating the value of your venture, but these can include using systems like Clockspot should you have any employees to account for, as well as working with an accountant to get a good understanding of the incomings and outgoings of your business as a whole.
Knowing this worth may seem like it’s mostly of benefit to your soon-to-be ex-spouse, but that couldn’t be further from the truth. You will also need to know that value to avoid taking a financial hit to your business, allowing you to plan ahead to account for a buyout or sudden loss of income as a result of your divorce. For partnerships where one partner will no longer be involved, this is particularly vital. Getting your business appraised is indispensable for this process, and will be requested by any divorce attorney.
Handling the aftermath of divorce
As well as the financial implications of a divorce, it’s important not to underestimate the emotional aftermath of a split. As a business owner and entrepreneur, it’s likely your sole responsibility to manage and keep your business running smoothly. Negotiations surrounding enterprises are often very intense, especially when you’re so wrapped up as the owner and entrepreneurial force behind that business.
Don’t forget to take a step back and remove yourself from the emotional part of entrepreneurship, especially when it comes to a subject as complicated as divorce. To avoid burnout, and ensure the longevity of your business venture, allowing time to look after yourself is just as crucial to your business as valuations and future safeguarding.
Don’t forget to take a step back and remove yourself from the emotional part of entrepreneurship, especially when it comes to a subject as complicated as divorce.
To make sure you have the support you need, choosing a great family attorney San Rafael CA based expert for instance, can help make the divorce process that much easier — a must for entrepreneurs wanting to ensure their business is safe and sound, no matter what’s going on in their personal life.