If you and your spouse own a business together, chances are it’s going to be affected by your divorce. Division of all of your assets also means you’ll have to split the business or find some way to decide who’s going to get it. There are also some divorce laws you have to take a look at if you don’t want it to have a negative effect on your business. Still, these laws vary depending on the country you live in. So, if you don’t want to make any major mistakes during your divorce, make sure you keep reading.
Don’t Refuse to Reach an Agreement with Your Spouse
When it comes to your business, the best option is you and your spouse managing to reach an agreement on how to divide it. This way, both of you will know how the business is going to be managed from then on and you’ll be able to concentrate on other aspects of your divorce.
This is the only way you’ll you be able to keep on doing business and earn profit as usual. Reaching an agreement with your spouse might be even more important if you happen to live in Japan. If you don’t find a solution, your divorce will have to be handled by Family Court Mediation, Family Court Judgement or District Court Judgement. This might drag out the whole process and it may have some negative effects on your business.
Don’t Think You’ll Divide the Business as Soon as You Separate
Another mistake you can make is believing that the whole process of going through a divorce is going to be brief. Be aware that it might take a while and plan accordingly. Even though you probably want to get through the divorce as quickly as possible, this might not always be possible, especially in some countries. For example, if you happen to live in Ireland, you and your spouse have to be separated for four of the preceding five years before you can get a divorce. It’s important to make sure your business doesn’t suffer in this period, as some wrong moves might lead to a disaster.
Don’t Forget That Laws aren’t the Same in Different States or Provinces
Different laws can make the whole process quite different from state to state. This is particularly important for the people living in Canada and the USA. Under Canada’s Constitution, each province is in charge of the laws when it comes to division of marital property. Even though they have the basics in common; for example, all of the property is divided equally between the spouses, there are some laws which might differ.
That’s why it’s always a good idea to check the website of your Provincial Government before you file for a divorce. Divorce laws also differ in different states in the USA. Some states are “community property” states while the others are others are “equitable distribution” states. There are also some states which have elements of both. Experts at Oregon Divorce Online advise you to check all the divorce laws in your state before you actually file for one.
Don’t Underestimate Your Spouse’s Role in Your Business
Even in the case you’re the sole owner of your business, there’s a good chance that you and your spouse will have to divide it once you get divorced. This is practically guaranteed if your spouse can prove that they helped you make some business decisions or helped you run your business in some other way.
You and your spouse will also have to divide the business if your spouse was employed by you. That’s why it’s important to prepare your business for the divorce, even if your spouse isn’t a joint owner of it. This is the case in a large number of countries in the world. So, no matter where you live, chances are you’re going to lose a part of your business to your future ex-spouse. If you don’t want this to have a devastating effect on your business, you should talk to your spouse and try to reach an agreement on how it will be run after the divorce.
How you handle your divorce is definitely going to have a major effect on your business. That’s why it’s very important to be aware of all the divorce laws in your country as well as some common mistakes business owners make when going through a divorce. Only with careful planning and cooperation will you and your future ex-spouse be able to keep your business running during and after the divorce.