Starting a divorce is rarely a simple process. Asset division, custody agreements, child support, and alimony arrangements can be complicated matters for anyone to address. Business owners also need to consider the challenges their business may face in a divorce. Before you begin seeking the valuation process of your business, there are some other tips you should consider as a business owner looking to initiate a divorce.
Determine your ownership goal
Before beginning the negotiations around your business, you should know your options and how you want to achieve your goal. The most common outcomes for a business include sole ownership, co-ownership, and total sale of the company.
Know your company’s value
You should never enter negotiations over any asset without knowing its total worth, and this is also true about your business. Before you consider accepting an ownership agreement with your spouse, get an accurate company valuation.
Consider using other assets to protect your business
Instead of negotiating over your spouse’s claim to the company, you may be able to negotiate over other assets instead. Real estate, vehicles, stock options, cash, IRAs, and other assets can all act as incentives for your ex to avoid trying to keep a share of the company.
Work with your spouse in your divorce
Collaborating with your ex-partner can considerably improve the outcome of your divorce. Instead of fighting in court to get the most out of things, you can work together to create a divorce agreement that benefits everyone. This kind of cooperation can allow you to protect your best interests in a way that also helps your spouse, leaving everyone with something they can be satisfied with.
Plan ahead to benefit tomorrow
If you are looking to protect yourself and your business before entering the divorce process, consult with an experienced attorney. They can help you create a strategy that you can rely on throughout the entire process and help you secure the outcome you deserve along the way.