One of the toughest emotional and entrepreneurial challenges is keeping a family business together with your ex-spouse after getting divorced. Spouses simply become more protective of their individual assets as well as of themselves, and the only way a shared business can survive is by putting its interest in front of their own. However, in such difficult times, achieving this can be very hard. In this article, we present you different possible solutions for maintaining your business and keeping it afloat after the divorce is finalized.
Determining Business Value
In divorce, this is probably the most critical process that concerns family business. It represents the value of your business assets today as well as the value of expected future benefits. The best way for determining the value of your business is to hire a professional valuation analyst who will follow strict valuation principles when valuing your business worth. If you decide to sell it, this price can be used in negotiations with possible buyers. The bad thing about the whole business valuation process is that family businesses often go through rough time during its owners divorce, having their value and performance drop significantly.
In case the spouses are rational enough to decide to continue managing their business, even though they were not able to manage their marriage, they would probably decide for the best option. Running a business requires different skills, so if spouses realize this, put their differences aside, and come to an agreement, they would do the best possible thing for the future of their business. Most often people find this impossible, but it can work well.
Even if a mutual agreement for business continuation is achieved, there should always be an exit strategy in case things do not work out as they thought they would. If spouses decide to end and sell their business, an exit strategy in the form of a mutual written agreement should exist to guarantee certain value to both of them and specify a detailed method that they will use to sell the business.
Severing The Business
In most divorce cases, it is possible to sever a family business into two different parts. It is a way for keeping the business afloat, because in most of family businesses each partner is responsible for certain segment. By splitting the business into two parts which would not be vulnerable to customer service issues and quality control caused by the other spouse, but be independent from each other, is possible in most cases. Each spouse is then entitled to change the name of its share, which may lead to new incorporation. However, corporation codes differ from state to state, and you should always have that in mind. For instance, those who are getting a divorce in Oregon should check all incorporation requirements of their segment of the family business at Secretary of State because they might be a significantly different from other states.
Selling The Business
If a mutual agreement regarding business continuation cannot be achieved, divorced couple can decide to sell the business. This may be the best solution, because if a cold headed business relationship is impossible, the business will continue to plummet down due to lack of understanding and support between the spouses. They can decide to sell some expensive assets separately (production plant, office building, or land), or hire an analyst to value their business, and the form a reasonable selling price around valued figure. In order to make a good sale, it is crucial to spread the word on all the right places. Also, not mentioning the divorce to possible buyers is important when negotiating the sale. Otherwise, they will know you are in a hurry and may try to lower the price down.
When going through a divorce, which is difficult enough from an emotional aspect, when things such as family business are in question, one must try to remain cold headed and rational as possible. Finding a mutual ground with your soon-to-be-ex is important, so you can discuss the future of your business and find an agreement that works the best for both of you.
4 Most Efficient Drainage Systems for Flat Roofs
The matter of drainage is the essential function of your roof. In fact, the very shape of a roof (a...
Google Algorithm Updates to Expect by The End Of 2021
Google’s algorithm updates tend to come with a lot of uncertainty and questions, and getting ahead of them is the...
Cozy Home Office Setup Tips For 2021
Whether you work from home or have set out a place for something you like such as crafting, studying, or...
Garden Party Ideas For Everyone
No one can make “a perfect’’ garden party, but we are all able to throw an amazing one. Of course,...
How To Find Low Competition Long Tail Keywords Using Free Tools
Keywords are the most fundamental and highest ROI activity when it comes to SEM and SEO. Having the right keywords,...
Top Tips For Healthy Family Meals On A Budget
A healthy diet is not very difficult to follow since there is a lot of information available on the Internet...
Tips For Your Morning Skincare Routine
Keeping your skin healthy can come down to numerous things. A healthy diet will be a good start in keeping...
How to Make SEO Work For You and Your Business
The world of search engine optimization has changed a lot, but certain fundamental principles like focusing on target keywords to...
How to Increase Your Vegetable Garden Yield This Year
If you are going thru the effort of planning, planting, caring, and growing your plants, you naturally want to get...
Why Families Benefit From A Family Dentist When Dealing With Oral Health Issues
Oral Health issues can be a source of conflict and stress in families, especially in families with young children. Not...
What Type Of SEO Is Effective?
Every business knows that it takes a huge amount of time and money to maintain a website. However, no one...
4 Reasons to Replace Your Car’s Engine With Performance Parts
Performance parts are the best kind of upgrades you can make to a car. Performance cars have a higher price...
Maximum Power: Update Your Old House For Modern Electrical Needs
An outdated electrical system can wreak havoc on your energy bills and greatly increase your risk of structural damage. If...
Key Techniques To Learn On A First Aid Course
Introduction First aid training is an incredible qualification that can enable one to offer life saving assistance in an emergency....
Best Tips For Managing Your Building and Construction Projects
Building and construction projects consist of many tasks, from job-site duties to office paperwork. Juggling it all can oftentimes be...
Tech6 years ago
Creating An e-Commerce Website
Tech6 years ago
Design Template Guidelines For Mobile Apps
Business6 years ago
The Key Types Of Brochure Printing Services
Travel9 years ago
Who Else Wants Also Nfl Hat
General6 years ago
Kobe Bryant With His Unique Nba Jerseys
Tech7 years ago
Why Small Businesses Can't Ignore Mobile Technology
Tech6 years ago
Climb Google Using These Checklists
Health8 years ago
Health Supplements For Sports Activities Nutrition