If you’re a business owner going through a divorce, then you’ll want to make sure that your commercial interests remain protected. To find out how you can continue to run a successful business during a divorce, read on…
Going through a divorce can be difficult at the best of times but, when you run a business, there are various additional challenges to contend with.
Of course, the success of your business will always be one of your biggest priorities, but when your personal life is in turmoil, you run the risk of jeopardising your business’s operations. So, how can you make sure that your business remains unaffected while you’re going through a divorce?
There are a number of ways you can keep running a successful business during a divorce. These include working closely with a divorce solicitor and relying on your senior employees to help steady the ship. Be sure to keep reading to learn more!
How might a divorce jeopardise your business?
Even if your business is experiencing an extremely successful period and nothing looks like it’s going to go wrong, life has a funny way of unexpectedly flipping the situation around.
When you’re going through a divorce, everything else going on in your life may begin to seem insignificant, which could spell trouble for your business. If you struggle to place as much time and effort into running your business while you’re dealing with the fallout of your divorce, then there may be immediate adverse effects on your operations and subsequent cashflow.
A divorce can also have more immediate financial effects on your business, depending on what agreements you already have in place with your partner.
During a divorce, the assets that each partner owns are usually split equally, rather than according to who owns what in the relationship. So, if you don’t already have an agreement in place, such as a prenup, your partner may be entitled to a share of your business.
Tips for running a business during a divorce
The importance of making sure that you continue to run your business successfully should not be understated then. But, what can you do to make sure that business runs as normal?
Here are some top tips to keep in mind…
Work alongside an expert divorce solicitor
First thing’s first, if you’re going through a divorce, then it’s not advisable to go through the process without expert legal support – that’s unless you think you know all the ins and outs of divorce law!
A solicitor who specialises in divorce law can be by your side throughout the entire process, talking you through each step and making sure that you understand exactly what is expected of you. They can also detail how certain decisions and actions are likely to affect your business, helping you to make informed decisions that protect your commercial interests.
In the vast majority of circumstances, your divorce solicitor will always look to achieve a collaborative agreement with your former partner, avoiding any disputes where necessary. But, in cases where disputes are unavoidable, and you want to make sure your business remains safeguarded, they can offer representation in court.
Lean on documentation signed during your marriage
As a business owner, you more than likely have specific contingency plans in place, just in case anything goes awry. If you have signed anything, such as a prenuptial agreement or postnuptial agreement, you can lean on them to make sure you can continue running your business as usual.
Prenups and postnups aren’t legally binding, but they are given significant weight by judges if they are contested. This means you’ll be able to focus on your business without having to worry about how your divorce might affect your level of ownership.
Trust your employees and partners
You have chosen your employees or company partners for a reason. You trust them to do their job and to do their part to keep your business running successfully. For this reason, you should lean on them as much as you feel as though you need to so that operations are unaffected while you spend time dealing with your divorce.
You don’t need to explain your personal situation in great detail, but if your transparent about why you’re taking a temporary back seat. Your employees will understand that they will need to step up to keep the business running as successfully as possible.
Look for collaborative solutions with your former partner
Messy, contested divorces are not going to be helpful if you want to continue running your business successfully. So, it may be necessary to seek a collaborative solution if you suspect that there is going to be contention between you and your partner during divorce proceedings.
To reach a collaborative solution, you may need to be prepared to make certain compromises. So, be sure to listen to what your partner has to say and make an effort to come to amicable agreements.
Separate your personal and commercial interests where possible
When you’re running a business, it can often be hard not to bring work back home with you. But, when you’re going through something as difficult as a divorce, you need to make sure that your personal and commercial interests are kept as separate as possible.
It can be easier said than done, but to run a successful business during a divorce, you will need to make sure that you dedicate your time to one or the other. When your interests become intertwined, that’s when issues will start to arise.
Are you trying to run a business during a divorce?
Running your business while going through a divorce is never going to be easy, but hopefully, these pointers have given you a better idea as to how it might be possible.
Are you a business owner who is currently going through a divorce? Or perhaps you’ve already been through the process and come out the other side with your business intact? If you have any other tips or pearls of wisdom you’d like to share, leave a comment below!