Some couple’s personal and business lives are tangled, and perhaps that was a contributing factor to the marriage’s demise. But whether you and spouse are business partners or you supported a spouse’s new and ultimately successful business endeavor, a divorce’s impact on your business can be tangible.
5 areas of concern
If they are aware of these dangers, business owners can better prepare for these potentially harmful issues. According to business experts, common areas of concern of over an owner going through a divorce include:
- Negative effects on performance: Some people are great at compartmentalizing personal matters during business hours, but a divorce will be a distraction for many. It not only weighs on the mind, but court appearances, meetings, correspondence with attorneys, dealing with a business appraiser, and providing documentation all take time away from work.
- Negative effects on staff: If the spouse has a presence at work or works there, it can distract the staff.
- Negative effects on other owners: Partners may also be concerned that your business share could get divided, meaning they get a new uninvited partner. What if the spouse opts to sell shares he or she got as part of the settlement? It can impact the company’s value or bring in other unwanted partners if they don’t buy the spouse out.
- Destructive effects on the business: It may make the most sense for spouses who are equal partners to sell or dissolve the business. A single owner may have to sell because they don’t have the liquidity to pay the divorce settlement.
- Harm to business reputation: The owner is often the public face of a business. A high-conflict divorce in public court may impact your reputation and cause bad press or customers to go elsewhere. Owners should tread carefully.
The right legal guidance can be an asset
An experienced, Board-Certified Family Law expert attorney will often be a tremendous asset to business owners. While effective legal representation takes communication, these legal professionals can help minimize distractions and manage demands on the owner’s time to ensure that you can continue to run your business.