Adults who have worked together to build a small business usually take great pride in their accomplishments. The business is likely a focal point for them, but it can become a challenging point if those owners decide to end their marriage.
There are several options that may be possible for the small business. It may remain open and the owners shift to a co-owner arrangement, which is possible if the owners can get along on a business level. They may opt to sell the business or close it, both of which come with specific challenges.
If you’re going through a divorce and hoping to keep your small business open as co-owners, these tips may be beneficial.
Create a partnership agreement
You and your ex need to discuss how the partnership agreement will work. This includes determining the duties of each person so there’s as little overlap as possible. Once that’s set, both parties will have to abide by those duty assignments.
Another point to consider is how the finances will work. You need to clearly define the full pay structure, including bonuses or profit shares. It’s also critical to define how the debts will be taken care of. The more detailed these terms, the less likely there will be disputes down the road.
Dealing with the business is only one of the assets that you have to think about when you’re handling property division matters. The other marital assets and debts all have to be dealt with, so be sure to take steps to protect your rights as you go through this entire divorce process.
