Lately, it seems as if the number of entrepreneurs that are getting divorced nowadays is at its all-time high. The reasons for this are more than obvious, ranging from the fact that a lot of them don’t have enough time for their partner, feel under more stress than regular people, while some people are outright married to their job. Sure, having your marriage fail because of your job is a horrible scenario but what’s even worse is if you get to lose both at the same time. This is why, if you’ve already found yourself in this disastrous scenario, you need to prevent your divorce from ruining your business. Here are some tips and pointers.
1. Determine the marital estate
The first thing you need to do when getting a divorce is to determine whether your business is a marital asset. If the business is established before the marriage, then it isn’t a marital asset. Still, this doesn’t mean that the spouse shouldn’t be reimbursed for their contribution to your business performance. In some scenarios, a practice that you own will be related to your profession, like a dental practice. In this scenario, the income is worth more than the business itself, which is yet another issue to take into consideration. Inheritances are not a marital asset, regardless if you received them before or after you got married.
2. Find skilled legal assistance
During a divorce, there’ll be so much paperwork to handle, as well as issues to settle. This is why you need a skilled legal team on your side to help settle the issue of marriage, custody, and property. Also, you need to keep in mind that the conditions of your marriage and the terms of your separation may depend on the state law. Therefore, if you and your spouse are currently living in NSW, it would be smart to find reputable family lawyers in Sydney to consult and represent you.
Other than bringing the knowledge of family law to the table, a skilled family lawyer is impartial as much as they are supportive. This means that they’ll advise you against pushing for more than you can hope to receive. Also, getting a skilled family lawyer reduces the probability of things ever getting to court and increases the chance of a mutually acceptable settlement.
3. Get a fair valuation
Just because your business is getting valued it doesn’t mean that you’re going to sell it. Moreover, the value of the business doesn’t mean that it’s the sum you will receive if you decide to sell it. After all, what a business is worth is not the same thing as what it can be sold for. Even though it may seem intuitive that getting your business valued at less than you believe it is worth is a good idea, it’s something that can horribly backfire in the future. Sure, you get to buy out the shares of your spouse for a smaller sum but, then again, if you decide to sell your business at a later date, this undervaluation can be used against you. Getting a fair and unbiased estimation is, therefore, not only your best but also the only legal choice that you have.
The very last thing you need to understand is that keeping yourself together isn’t going to be easy, yet, it’s something that you absolutely must do. Just remember that no matter how hard it is at the moment, the choices you make now will take effect in weeks, months and years to come. Therefore, acting impulsively and against professional advice might be the last thing you want to do.