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Don’t let your divorce harm your business

| Jun 22, 2020 | Divorce |

Planning for the worst can go a long way in business and marriage. While being business-like about your marriage can seem cold to some people, it can save a lot of heartaches if your relationship does not last.

Things can become especially complicated if you own a small business and it can be hard to separate work from home life. Even if your spouse was not an official part of your company, they might have played some role in its success. If you get divorced they may feel entitled to part of your company.

You can minimize the negative effect a divorce has on your business if you do some planning when you get married.

Put it in writing

A prenuptial agreement can avoid problems later. If you bring an existing business into your marriage, agree on its value at that point. You can then decide upon a percentage for your spouse of any value added during your marriage. If your spouse worked on your business unofficially, say doing your accountants in their spare time, you will need to compensate them fairly.

If you start a new business together while married, be sure to draw up a contract. Set clear terms of ownership and consider what will happen if you split up.

Keep your finances separate

Mixing business money and personal money can lead to problems later. Separate the two from the start to avoid arguments when you divorce.

Failure to plan could mean the end of your marriage is the end of your business too.

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