Divorce is a stressful and complicated process, especially when you’re also managing the business you share with your ex-spouse. There are many things that can go wrong if you’re unprepared for this transition. In fact, we’ve seen countless business owners who have made some very big mistakes during their divorce proceedings. These mistakes usually involve failing to value their business properly or letting emotions get in the way of making rational decisions about how to divide assets when they separate from an ex-spouse.
Taking these steps will help ensure that your divorce doesn’t negatively impact your finances:
Failing to Value the Business.
The business was a joint endeavor, so you should not automatically assume that it belongs to the other spouse. If you are going through a divorce and want to separate the value of your business from your spouse’s share of the marital estate, it’s important that you hire an accountant or valuation expert who can establish a fair market value for both parties’ shares of the business. It is also important that each party have their own attorney throughout this process in order to ensure that accurate financial information is presented during negotiations.
Refusing to Share Control.
One of the most common mistakes business owners make during a divorce is refusing to share control. This is a big reason why so many businesses fail after a divorce. You need to be in charge of your finances, but you also need to be open and honest about them with your spouse. In other words: don’t hide or lie about money or assets that are part of your company. A good way to stay on top of this is by keeping separate accounts for personal and professional spending, as well as clearly separating work from home life in general—keeping receipts for everything you buy helps too!
Ignoring Expert Advice.
In the same way that you would never try to repair your own car, you should never attempt to handle a divorce alone. You need a good lawyer who specializes in divorces for business owners and has experience with small businesses. You also need an accountant and a business coach who can help guide you through the process of repositioning your company post-divorce. You’ll want a financial planner who can help with tax implications and investing strategies, as well as someone skilled at helping you manage any emotional fallout from the split — such as an experienced life coach or therapist.
Letting Your Emotions Get the Best of You.
It is important for business owners to remember that emotions are feelings and that your feelings don’t necessarily represent what is going on in your life or business. When you are feeling overwhelmed or upset by something that has happened, it can be hard to step back and evaluate the situation rationally.
However, even if you are angry with someone or the decision they made affects you financially or personally, it’s essential to try not to let those emotions cloud your judgment. If possible, take some time away from the situation so that you can think clearly about what went wrong and how best to move forward.
Making Bad Decisions and Compromising Too Much.
Avoiding bad decisions and compromising too much with your ex can be detrimental to your business. To ensure that you’re making smart choices, it’s important to carefully consider all aspects of a decision before jumping into it. This can be especially difficult if there are emotions involved—but taking the time to step back from those feelings will help you make good decisions for the long term.
If you decide to make a big move, such as selling or merging with another company, it’s also crucial that both sides have equal power in negotiations and contract negotiations. When one partner is more invested than another (or vice versa), this could lead to problems down the road when it comes time for them to weigh in on decisions about the business’s future direction.
Many business owners try to keep their divorce as private as possible, but be careful not to make a bad deal in divorce court out of embarrassment and pride. Remember that your finances are at stake and getting a good divorce settlement is one of the most important things you will ever do for your financial health. Your finances are at stake and getting a good divorce settlement is one of the most important things you will ever do for your financial health.
- Divorce can be an emotionally draining experience, and it’s also expensive. Think about how much you pay monthly to maintain your current lifestyle and multiply that by two if children are involved in the marriage. That’s why professional advice is so important when going through a divorce; it helps keep costs down when negotiations start heating up because lawyers know what they’re doing.
If you are going through a divorce, it is important that you take care of yourself and your business. It’s also important to remember that getting good legal advice will make all the difference in getting the best outcome possible for yourself and your business.
Mestayer & Associates provides civil litigation for clients throughout the Gulf Coast area including Pascagoula, Biloxi, and Gulfport. If your spouse has asked for a divorce or filed for one, then contact us today and let us guide you on the next steps. Call us today at 228-762-1193 or visit www.pascagoulalaw.com We are your legal experts! You can also visit our office located at 2128 Ingalls Ave. in Pascagoula, Mississippi. We look forward to talking with you!
No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.
This article does not create an attorney-client relationship. I am licensed to practice law in Mississippi and have based the information presented on US laws. This article is legal information and is for entertainment and informational purposes only and should not be seen as legal advice. You should consult with an attorney before you rely on this information. Any information provided in this blog is accurate and true to the best of my knowledge, but that there may be omissions, errors or mistakes.