Reduce The Impact Of Divorce On Your Business
Divorces can be very emotional and complex, even if there are minimal assets involved. When the couple owns a business together and then gets a divorce, things get even more daunting, especially when there is no prenuptial agreement involved. How do you go about splitting the business?
Divorces are pervasive and can affect everything, from assets to money to children to businesses. When a divorce is going on while you’re trying to run your business, it’s easy to get distracted. You may focus less on your business as you try to handle your divorce as best as you can so you can avoid conflict and just get it over with.
But there’s a lot on the line and you don’t necessarily want to get things over quickly. If you have been directly involved in the business, you want to make sure you get your fair share. However, you also want to ensure that the business is running as smoothly as possible despite all the interruptions. Here are some things to consider.
Have a Plan in Place
How is the business going to be split in a divorce? Ideally, there would be a prenuptial or postnuptial agreement in place to outline what would happen to the business in the event the marriage fails. These agreements are invaluable in providing details about how the business will be valued and subject to distribution.
Barring a prenup or postnup, there are ways to minimize the disruption to your marriage in the midst of a divorce. First, you can get organized and ensure you keep accurate, detailed records. Make sure that business and personal transactions are kept separate. If you haven’t done this in the past, you may need a forensic accountant to go through your transactions during a divorce.
Also, assess your wages properly and spend money wisely. Don’t undervalue yourself, as this can have serious implications in a divorce. Do not underreport your income and then live a lavish lifestyle.
In the middle of a divorce, it won’t be “business as usual.” There will be some disruption, so here’s how to keep things organized and efficient:
- Keep work and divorce activities separate. Make a list of things that are personal vs. business-related.
- Become a master scheduler. Schedule meetings at regular time slots.
- Don’t put burdens on your employees. If they need to help you, be as detailed with your request as possible.
- Avoid procrastination. Respond to lawyer and court requests in a timely manner.
Contact a Maryland Family Law Attorney Today
Divorce requires the split of all assets, including any closely held businesses. There are many ways to divide a business, so if there is no prenup in place, there are other options available.
A Columbia family lawyer from The Law Offices of Todd K. Mohink, P.A. can help you understand all the elements involved. Schedule a free consultation with our office today by filling out the online form or calling (410) 774-5987.