A divorce does not only affect your personal life, it can affect your business too. Though you may try to keep your business separate from your home, but when a marriage is broken, the two faces a collision. Your partner may have not entered your business premises, but your break up makes him or her entitled to about half its assets though you might be the founder of the business.
Splitting of business assets:
It is a tough job to argue against division of business assets in half. The divorce courts often ignore the fact that the business involved might be at stake. The settlement depends upon many factors, like the tenure of your marriage, the needs of the children, past case laws and discretion of a judge.
Breaking up could be expensive for you:
A divorce is a hard decision and also an expensive one. Many divorcing men are often compelled to sell their own home to cover the cost of divorce and alimony payments, legal expenses, etc. People now are inclined to go for a live – in with their partner rather than getting married to avoid the hurdles of an expensive divorce.
How the business becomes messy?
Before you appear before the divorce courts, you never think about splitting of your business assets. While pronouncing your wedding vows, you never think of assets but your spouse might be thinking about them.
When you break up, your business assets such as your home, car, etc. get affected. You might not expect that you have both equal share in the business though your spouse always stayed at home. There is no difference between the active business associate and homemaker, both are supposed to contribute equally to family wealth.
The tenure of marriage determines the amount of the settlement. The longer is the marriage, the more expensive can be a divorce. Even childless marriages where the spouse had no part in the business could cost you a lot.
At the time of granting a settlement, the courts consider the business together with any other assets depending upon the circumstances. Now this might cause the business to be sold.
How to protect the business?
There are steps which can be taken to lower down the impact of divorce on your business. It depends upon when the business was started as well as who started it, that is, is it your spouse or you.
If there some other assets already transferred to your spouse without affecting the business, it could be beneficial for you. The partner conducting the business can choose to pay a lump sum to the other for a period of time. This will also help him to save the business and its assets.