Some Florida residents who have decided to end their marriage might have to consider what to do with the company they own jointly with their soon-to-be ex-spouse. They might worry that it is impossible to run a company when the romantic relationship has ended. However, it is possible to continue jointly running a company after a divorce.
Making it work
In some cases, divorcing spouses might decide that running a business together is impossible, particularly when the divorce is highly contentious. However, for others going through a high-asset divorce, the business might represent the way both earn their living. In that case, there is a lot of motivation to make it work. There are some things they can do to continue running the business together successfully, including:
• Communicating clearly with everyone who is affected, from employees to clients and each other
• Drafting or redrafting a business agreement outlining all aspects of the business, including responsibilities, salaries, etc.
• Maintaining emotions about the personal issues out of business decisions to avoid hurting the business
• Seeking professionals to both help in the business and to offer guidance
What if it does not work
If it is impossible to continue running a business with an ex-spouse, you might have to do some negotiating regarding the future. If one spouse is more involved in the day-to-day running of the business, that spouse might want to buy out the other spouse’s share of the business. Another consideration might be to sell the business altogether and to split the proceeds.
No decision is easy. But if the deteriorating personal relationship is negatively affecting the business, the divorcing spouses will need to take a hard and honest look and consider the best choices going forward.