Know how to handle a company if you end up divorcing

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Know how to handle a company if you end up divorcing
Written By: Josh Lowell ~ 7/7/2017

A divorce comes with a lot of unknowns. You might wonder who is going to get what and have a host of other things to consider. If you and your ex have a business that you both run, your divorce is going to be a lot more complicated.

Your business' needs won't stop just because you are going through a divorce. If you and your ex are going to continue to run the business together, you have take the time to prepare for this.

One thing that you need to do is to define the roles that you and your ex will have in the business. Go in depth about what each of you is going to do. Define what will happen if your duties and your ex's duties overlap. By clearly stating what each person's role is in the business, you can prevent issues later.

Another thing to think about is the financial aspect of the business. You and your ex need to determine who is going to get what. This can be a percentage of the profits or an actual salary. In either case, make sure that you define what is going to go back into the business.

Finally, be prepared for your relationship to change as you and your ex continue to run the company. Hopefully, the two of you can maintain a good working relationship throughout the divorce and after it. Make sure that you give yourself an out just in case things don't work out that way. Your decisions and planning now can help you to make sure that you are protected down the road.

Source: Entrepreneur, "If You Run a Company Together, What Happens When You Divorce?," Kate Taylor, accessed July 07, 2017

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