How does divorce affect your business?

| Mar 12, 2021 | Uncategorized |

During your divorce, you still have a business to run and clients and customers to take care of. How does your current legal situation affect your company?

Forbes examines the potential ways a marital split alters commercial operations. Prepare yourself and your company for dissolving your marriage.

Daily operations

Anticipate daily business disruptions as you deal with court proceedings, legal representative meetings and the emotional and mental fallout of divorce. You may also need to take time out of your day to gather business documentation for your divorce. Depending on the required paperwork, you may have to enlist help from your staff, which takes away from their time spent on regular job duties.

Shutting the doors on your business

Is your current spouse also a current business partner? If so, and if the two of you share equal ownership in the business, you may have no choice but to shut your business down for good. If your soon-to-be-former-spouse requests a business payout for her or his business share, you may have to sell your company to honor the divorce settlement. The degree to which the divorce disrupts your company may damage your professional reputation, cause you to lose clients or employees or drive your customers away, all of which may run your business into the ground.

Employees and partners

After the dust of the divorce settles, your former partner could become an unwanted business partner, or your soon-to-be-ex-partner may sell her or his business share to an outside party who becomes a new partner. Either way, your partners and employees may become casualties of the new partner.

Take steps to shield your business from your divorce. Quick action may minimize commercial casualties.