Couples who own a business together will have to decide the fate of the company if they decide to divorce. For some, the answer will be to allow the business to remain open with them operating it as partners.
Trying to run a business with an ex isn’t an easy undertaking. One of the most important things to remember is that this is only an option if both parties are able to work as a team, which isn’t always easy if the divorce is contentious. Having a well-defined agreement is the key to keeping stress to a minimum.
Write out responsibilities
Each person will have specific responsibilities within the business. These should be written out so there’s no question about who should handle which aspects of the company. There may be some areas that overlap, so both co-owners should be able to work together to address those.
Include information about financial matters
Financial matters, including business expenses and owner compensation, are important areas to cover in the agreement. Having as much information as possible can help to prevent financial disputes in the future. Remember, the company’s financial state should be a primary factor in how these parts of the agreement are set up.
Plan for disagreements
You should have a dispute resolution plan in your agreement. This should include steps that are best for the business, such as only discussing the issues in private. Having a plan for having the assistance of third parties who can help resolve the matter is also beneficial.
The division of the business is going to play a role in the property division for the divorce. Working with someone who understands these situations and can take your circumstances into account is beneficial for anyone in this position.