Business owners are usually the most motivated, strategic people in their industries. They are always trying to jump over hurdles, predict the next best step and outrace their competitors. However, there is one large hurdle that tends to trip up entrepreneurs, divorce.
You have to think about how a family or large business could change after a complex divorce. You may even need to weigh multiple avenues to ensure that you are following the right course for your business.
A spouse can use other property holdings or assets as a negotiation piece to hold control of a specific business. This is great if your former partner wants the house, the art collections or something else that you are willing to let go of. It is also a more peaceful avenue than duking it out in the courtroom over company shares.
Selling the business
If both spouses are willing to sell the company, it may be best to find a buyer who is willing to purchase full control and split the profits from the sale. The buyer could be anyone from a competitor to another family member or a separate third partner. It could actually save you time and effort if you plan on selling off your company in the future.
There is an avenue where your ex could act as a silent partner – meaning they would be able to receive a specific portion or percentage of the profits while you maintain the overall control over operations of the business. This works well for couples who may not want to work together but want to receive benefits from the family business after the separation.
A separate financial agreement
Similar to negotiation or silent partnership, you could always compromise with your former significant other and develop an agreement that allows them to walk away with a certain amount of money (a buyout) or portion of the shares if they relinquish any involvement within the business. It’s a harder option if you cannot civilly work with your former spouse.
There are so many ways to approach dividing your company, but you have to find the right path for you and your company’s success. You do not want to end up going through financial struggles due to your divorce and your company’s hardships.