Any divorce involves deep emotions, crushing decisions, and complicated relationships that extend beyond the couple itself. When couples are joined in both marriage and a joint business venture, things can get even more complex. In these situations, the counsel of a local attorney is essential.
Joint Business Venture – Steps to Consider
While some couples may contemplate remaining in joint business venture bliss together, others know from the get-go that working together is not a viable option. How can everyone come out a winner with so much at stake? Experts have some tips as to how to proceed:
Compartmentalize: It is important now, more than ever, to separate issues that do not belong together. Financial issues and business interests should be handled independently of childcare and emotional matters. While unraveling the feelings from the business side of the relationship can be difficult, it is much easier to establish a win-win outcome when individuals are able to step back and handle business concerns rationally.
Get the joint business venture support you need: Things are going to be tough for a while. You will need a shoulder to lean on in the moments that seem overwhelming, as well as trusted legal counsel. Understand that there are many ways to carve up a business, and plowing through those options can be exhausting. If you choose to continue working with your former spouse, examining any potential shifts in roles, financial interests, and decision-making authority will be critical. If you decide to make a total break, that will carry its own set of concerns.
- Look at your options with clarity: If the business has run smoothly while utilizing the talents of both you and your spouse, is it possible to continue, despite the failed relationship? Or will the divorce impact your ability to interact professionally? The climate at work is going to be set by the two of you, so if you are not going to be able to remain genuinely positive at work, looking for a new partner may be your best bet.
- Create explicit role definitions: If you do decide to give the business a chance together, make sure you both understand precisely what role each of you will be playing at work. Nobody wants to be micromanaged, so having clearly delineated responsibilities will be essential. Determine just how much collaboration will be workable for you.
- Re-evaluate the situation over time: If you choose to continue working together, be sure you have a contract that takes a fresh look at the terms down the road. Who knows how you will feel once the dust settles and you take a look at the situation. Maybe you will have established a new, comfortable rhythm. Perhaps you will have discovered that what you thought would be a conciliatory working relationship just never evolved into the professional repartee you were hoping for. Either way, having a contractual obligation to re-examine and tweak things later will be helpful for both you and your former spouse.
If you choose to get out of the business altogether, get a fair valuation of the company. Have a professional examine records and come up with a fair buyout plan. Then walk away and do not look back. Continue reading →