3/19/2015

Divorce for small business owners: what to know


One of the most troubling things that can happen to a small business is the divorce of one of its founding partners, or in the case of a family business, the divorce of a company’s co-founders. If you’re a small business owner contemplating divorce, there are a handful of things you should consider before you begin the process.
1.      Be clear with yourself. Before you begin the process, ask yourself what you’re willing to sacrifice, what you aren’t willing to compromise on, and what costs you think your business can withstand. Also, as the process begins and wears on, be prepared to continually reevaluate the costs the divorce is taking on you and your business so that you can take appropriate action.
2.      Find the right attorney. Make sure, before you begin the divorce process, that your attorney understands what you want out of the situation and what you’re willing to sacrifice to get it. If you don’t have frank conversations with your attorney, you may end up spending unnecessary time and money on the divorce process, which can ultimately hurt your business.
3.      Use additional resources. Many small business owners surround themselves with a team of advisors — use them as you work through your divorce. Financial advisors, mentors, trusted associates, friends and family can all provide valuable insights during your divorce. Use them when you need to.
4.      Hire experts. In addition to utilizing your personal network and working with the right attorney, a business valuation expert can help you save time and money when it comes to evaluating the value of your business.
5.      Prepare for the lasting effects of the divorce. The process may take a year or more, but the long lasting effects, both financial and emotional, can take much longer, so be prepared to deal with the continued effects.

Here’s a useful article on the topic if you’d like to learn more.

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