People who are going through a divorce have a lot of things to think about. For those who have a family-owned business, their divorce can spill over into work. Trying to manage this situation can be a challenging undertaking.
One of the most important considerations in these cases is figuring out what’s going to happen to the business. Four options are most common:
- One spouse buys the other out
- Sell the company
- Close the business
- Operate the company together
Until a decision is made, there are a few ways that business owners can reduce the impact the divorce has on their company.
Document everything
Documenting everything, especially related to the business’ finances, is important. This can help to show exactly what’s going on, which is beneficial in all situations. This can also set up a good precedent for continuing on with running the business as a team if that’s the fate of the company.
Set specific duties
If both parties continue to run the business together, even if it’s only during the divorce process, there should be specific duties assigned to each person. Having everything spelled out precisely can minimize the risk of misunderstandings.
Keep employees and clients informed
Employees and clients may notice the changes with the business. Instead of leaving room for rumors, take the time to provide basic information about what’s going on. This doesn’t have to be in-depth information. It can be an outline of things that will change and things that will remain the same.
With so much at stake, small business owners going through a divorce should seek guidance about their options as soon as possible to learn how different possibilities may impact the future. That way, they can make informed decisions moving forward.