Business-Couples-that-Divorce
Many couples go into business together. They make plans to make the business successful, but what they don’t plan for is divorce. With the high divorce rate, it is inevitable that some couples that go into business together will eventually get divorced.
What are these couples to do? There are 4 obvious options: continue running the business together, close the business, sell the business or let one spouse gain full ownership of it completely. Financially, continuing the business may be best for both spouses. It isn’t going to be easy, but there are ways to work together peacefully. Here are some ground rules if you ever find yourself in this exact situation.
- Respect each other. When continuing to work together, respect is of the upmost importance. Often times when divorce is involved, anger and bitterness can take over and muddy your attitude toward your former spouse. However, negative feelings must be checked at the business door if you are going to keep the business successful.
- Have an agreement. When shareholders enter into a business together, they typically sign an agreement that spells out the terms. Married business owners often skip this step. Once you are divorced, divorce lawyers will recommend having an agreement in case one partner should decide to leave the business. It will help tremendously if you know how you plan to split everything.
- Don’t get employees involved. It may be natural for your employees to want to pick sides in your divorce, especially if it is a messy divorce. Be upfront with your employees and let them know what is going on. This can help eliminate, or at least lessen, the workplace gossip. Reassure your staff that your issues are being resolved and being dealt with accordingly, and they have nothing to fear about their positions in the business.
These 3 ground rules can dramatically alter the way your business is run after a divorce. They can help you continue to work together and make the business successful, especially if it is a messy break-up. If you own a business, are going through a divorce and need legal help, call me at (312) 621-1230 for help with divorce papers and any other legal documents. As both a CPA and an attorney, I can help you sift through the situation.
Michael C. Craven is a well-known divorce attorney in Chicago, CPA and a partner of the law firm, Beermann Pritikin Mirabelli Swerdlove LLP. (Formerly of Beermann, now a Partner at Harrison LLP) located in the Chicago area. He is highly respected among other divorce attorneys, judges and his clients. He also holds a Master of Tax Law Degree (LLM). For more information about his services, contact Michael at mcraven@harrisonheld.com or at Divorce Lawyers Chicago
