Running a business is difficult and so is getting a divorce. When you put the two things together, it can feel like a nightmare. You may be wondering how your company is going to survive this storm. It can be difficult to manage your business during a divorce, but it is possible to get through it and continue thriving.
You will need to do some planning to protect your business from collapsing from your imminent divorce. Along with determining the value of your business, here are the most important steps you can take to keep your business alive even though your marriage is ending.
1. Draft and sign a postnuptial agreement
If you did not already sign a prenuptial agreement, you can sign a similar document after you get married and before you get divorced. A postnuptial agreement can determine what your rights to your business assets are in the event of a divorce. If such an agreement is in place, you can generally bypass the consequences of property division laws.
2. Use a buy-sell agreement
Your operating agreement should include a provision that outlines what will happen if one of the business owners gets divorced. A buy-sell agreement can protect your interests by prohibiting the transfer of shares without the approval of shareholders or other partners.
3. Pay off your spouse in other ways
According to Business.com, you have options to protect your business even if you are already amidst a divorce. One thing you can do is give your spouse something else other than ownership interest. Consider offering him or her real estate, stocks or retirement funds instead if your business is valuable to you.
Just because your marriage is falling apart does not mean your business has to follow suit. While your divorce will likely complicate things for a bit, you can continue running your business if you adhere to these three tips.