Anyone who has gone through a divorce will be able to tell you it’s not something they want to experience again. For small business owners in particular, a divorce can have an enormous impact on their ability to maintain a company. Read on to find out how to steady the ship during difficult times.
For the average man or woman, a divorce is — well, let’s be honest — a bit of a nightmare. But for business owners, the experience is all the more stressful, with the prospect of their business being a casualty of a messy or expensive divorce.
For some, this is just a minor setback, as their company is able to weather the storm, but for newly established businesses, it can spell major problems.
In this article, we’ll take a closer look at how divorce affects business owners, what the possible ramifications can be for their companies and, crucially, some tips on how to steer clear of them.
Emotional Strain & Distraction
Business owners are, first and foremost, people. People have emotions and emotions have a significant influence on how productive and motivated you are. The end of a marriage — even those that are amicable — is a difficult time.
This, combined with the stress involved with adjusting to a new living arrangement and financial situation, isn’t easy.
As a small business owner, you’ll have a lot of responsibility to maintain your company; you’re the person that your employees look to in tough situations. If your emotions are running high, it’s impossible to think clearly and rationally. This can make you a less efficient business owner and result in a lower-quality product or service.
You then have to consider how time-consuming the various aspects of divorce can be. This is where a top family lawyer is worth their weight in gold. Delegating personal matters to them will give you the freedom to work without the distraction of paperwork or interacting with your former spouse’s legal representatives.
Financial Impact of Divorce
Building a small business from the ground up requires you to invest a lot of your time, effort and, of course, money. In the early days, smaller companies won’t be making a profit and the budget is extremely tight.
With less expendable funds available, you could be caught off guard by money-related problems, meaning that the financial impact of a divorce could easily spell the end of a company.
Shopping around for the best divorce solicitors to suit your budget will be a massive benefit throughout your divorce. An expert family lawyer will use their experience and knowledge to make sure that you get through your divorce suffering the absolute minimum financial loss, as well as provide you with advice for the future that could save your company.
What is Your Spouse Entitled To?
Spouse entitlement is another issue that can cause you severe disruptions, as you may end up paying a significant amount of money or have to share future company profits.
If your business was established before marriage, you’ll have a better chance of being unaffected, unless your ex-partner has a sound argument that they contributed towards the company’s success.
If the company was founded while you were married, there’s a good chance your former partner may have contributed to it in the early days. In this case, you’ll need to seek the advice of your divorce solicitors to work out the best approach.