While running a business in and of itself can be challenging, this task can become even more difficult if you have personal issues that are bleeding over into your professional life. Although you might try your best to keep things separated, big personal issues are bound to creep into your business life on occasion.
One of those occasions where there’s likely to be some overlap is a divorce. But not only could this make this messy with your business, but it could also cause irreparable damage if you’re not careful.
So to help ensure that this doesn’t happen to you, here are three tips for protecting your small business when going through a divorce.
Revisit Your Prenuptial Agreement
Although many people think of prenuptial agreements as things that are only needed by the rich and famous, having anything to your name before you’re married could make getting a prenuptial agreement a good idea. Especially if you’re a small business owner, you’ll want this added protection. So if you do have a prenuptial agreement, Rosanne DeTorres, a contributor to Inc.com, recommends that you go back to that document to see what protections are afforded you under this legal agreement.
If things aren’t clear to you, or you need additional protection that isn’t spelled out in this agreement, you may want to find a good lawyer to help you.
Make Sure Everything Is Accounted For
When preparing all the paperwork and documentation for your divorce proceedings, you might be tempted to make it seem like you have less stake in your business because you might think this will cause you to have less to lose. However, this type of thinking and action could backfire on you easily.
With that in mind, Carrie Smith, a contributor to Wise Bread, shares that you should put together the most accurate picture of your finances, both personal and professional, as you possibly can. If everything isn’t accounted for at the beginning, you might find yourself fighting an uphill battle legally is previously undisclosed information gets disclosed later on.
Offer Something Of Significant Value That Isn’t Your Business
Depending on the type of marriage and business you have, you might have a harder time fighting for your business. However, Daniel Sarath, a contributor to Business.com, shares that some spouses don’t necessarily want the business as much as the profit from the business. So rather than splitting up the business, you may want to try to offer something else that’s of significant value but isn’t related to your business. This could be your home or other possessions.
While this would be taking a hit in another area of your life, you may be able to better protect your business by taking actions such as these.
If you’re about to start the divorce process and have a small business that you own, consider using the tips mentioned above to help you protect that entity.