Going through a personal divorce can throw up a myriad of challenges and these can be amplified if, to boot, you are also a business owner. The last thing you want is for both your private life and then your livelihood to come crashing down all at the same time. So, it is with this in mind that we explore how to protect your company’s finances when you are going through a divorce.
Prevention is Better than Cure
With the divorce rate in the UK at around 40%, statistically speaking many entrepreneurs will find themselves going through one at some time in their life. It makes sense then that business owners take pre-emptive measures in order to protect their company finances and not wait to be reactive if they find themselves among the 40%.
If you are planning to get married and your company already exists, then signing a prenuptial agreement, although not very romantic, will offer transparency to both parties regarding what will happen to the business should a divorce occur further down the line.
For those who are already married, whether you suspect a divorce may be imminent or not, prevention is better than cure. Seek the advice of legal specialists like Wither Worldwide, who will be able to instruct you regarding the steps you need to take to protect the company’s finances if a divorce does take place.
If the Time is Now
If you are already going through a divorce then the picture is a little different, there are, however, still steps you can take to protect your company’s finances. For instance, the most amicable divorce settlements are often those which are agreed privately or through legal mediation. Here you should look to come to an agreement that includes leaving the company and its finances out of the divorce settlement. Other assets can be offered during mediation sessions in an attempt to settle the divorce, such as the division of savings and property.
If legal mediation is not an option for you or has been tried and failed, then another way to try to protect the company finances is by offering shares to your partner. This is a compromise, for sure, but it puts you back in the driving seat and, perhaps most importantly, it gives you some breathing space in which to think and regroup. Plus, it leaves your company and its finances intact.