The thought of owning your own business has been your dream for many years. You are your own boss, managing your schedule and pursuing your passion.
You invest a lot of your life, finances and time into building your business from the ground up and keeping it running every day. That is why, if you face a divorce, you might worry: how can the divorce proceedings affect your business?
Two primary issues to consider when business owners divorce
Since your business and your family are two significant aspects of your life, it is natural to assume that a divorce could have an impact on your business. Generally, two issues concern business owners the most:
- Divorce can disrupt business as usual: Running your own business takes a lot of time and energy. However, moving forward with a divorce can divert your energy and focus away from your business and responsibilities. It can help to organize your schedule and allocate time dedicated to resolving divorce matters, so you can devote your full attention to your business without any distractions.
- Business assets are often subject to property division: The second most common worry often revolves around finances. Even if your spouse is not involved in any aspect of your business, the business assets could still be considered marital property. Therefore, they are often subject to North Carolina’s equitable distribution rules. This can have several outcomes. The most common outcome usually has the business owner buy out the spouse’s share after it is calculated in property division.
Dissolving the business during or after the divorce is often a last resort, and it is very rare that business owners will have to take this step. However, there is no denying the fact that a divorce can still have a large impact on your business.
Important note: Protecting your business requires preparation
There are several ways that business owners can protect their business in the event of a divorce, though sources like Inc. Magazine state that it is critical to be proactive. Business owners should take action to protect their business long before they even consider getting a divorce.
These strategies might involve:
- Maintaining a competitive salary
- Implementing a legal agreement to protect business shares
- Choosing a business structure that protects business assets
Regardless, business owners should consult an attorney in the event of a divorce. A knowledgeable divorce attorney will know how to help business owners protect their assets and the future of their business throughout the entire process of the divorce.