When you are building your business, your marriage may fall apart. Sadly, getting a divorce can have a negative impact on your business. But just because your marriage is ending does not mean your company needs to have the same demise.
While you may experience some turmoil, you may be able to have a thriving business after you and your spouse separate. Here are some methods for preserving your business when your marriage is in trouble.
Keep good financial records
One of the best things to make things easier is to maintain your records properly. Organize your records as early as possible to have a clear picture of your situation. Make sure your family finances are always separate from your business finances too. You do not want to borrow from your marital account to cover any company purchases.
Get a neutral valuation
Your business may be subject to property division. In order to divide everything fairly, you will need to know what your business is actually worth. Hire a valuation professional to determine this figure. You may even want to have another person review the valuation to ensure it is accurate. The valuation should consider current revenue and projections of future growth.
Give up other assets
If your venture means a lot to you, you may want to do everything possible to keep it in the settlement. However, your spouse may try to get a significant portion of the company as well. In order to pay off your spouse and keep the business to yourself, you may need to sacrifice some other property or source of money. You may want to forfeit a vehicle, retirement account, collectible items or the family home instead.
These are just a few general guidelines; there may be many other options to safeguard your business interests, depending on your circumstances.