Every couple that gets into marriage believes that they will live happily ever after. But sadly, the unexpected happens and the relationship doesn’t work out the way they thought it would. Therefore, in the unfortunate event that you find yourself in a family court pursuing divorce, and you have doubts about the economic effects of the divorce on your business. There are some several things you need to know about protecting your business during divorce.
Find a Neutral Professional Valuer
Divorce usually put you in emotional and financial stress. Unfortunately, most people prefer agreeing to everything to avoid conflict, but this is not a wise decision. The best thing to do is first hire a professional business valuer so you can know the worth of your business. You also need to hire a business lawyer to guide you on the best way to protect your business from legal issues during the trying time.
The purpose of the valuation is to determine what you might have to share with your ex-spouse. The services might come in handy if you decide to buy your spouse’s shares in your business. A business lawyer can take care of the business legal documents (Memorandum Of Association & Articles Of Association, Shareholders’ Agreement, etc), monitor the valuation process, and protect your rights and interests.
Buy Out Your Soon-to-Be Ex-Spouse Shares
After confirming and agreeing on the business valuation, the next step is buying your ex-spouse share if he or she is willing to sell. This might sound like it is a lot of money you can’t afford, but don’t worry. There are several ways you can raise capital to do it. This includes.
- Selling some personal assets
- Get funded by angel investors
- Taking a loan
- Buying on credit and making arrangements to pay at a later date
Remove Your Ex-Spouse from Any Business Involvement
Divorce typically takes an emotional toll on most people, and some put their business leadership at stake. In a marriage, there are those signs that reveal to you that your marriage is heading to a divorce. Therefore, if you notice these signs, the best thing is to avoid involving your spouse in your company deals.
It is important to note that the amount of time your current spouse spends in the business can be used to justify that they should have a bigger share of your company’s profit. If you have not been directly involved in your business, you need to learn as much as you can about business operations. Let the customers and employees know you and recognize your efforts.
Trade-Off Other Assets in Exchange for Your Business
Trading off other assets is another common way of protecting your business and getting full ownership. A business lawyer can advise you on the best way to do it. For instance, you can exchange the business shares with the corporate stocks, high-value arts, and other investments you are willing to let go.
If you are going through the divorce process, it is crucial to take measures to protect your venture. Don’t lose everything you have worked for to your partner. All you need is to pay attention to these tips and hire the right professionals to guide you.