Make priorities for running your joint business after divorce

| Jan 18, 2019 | Business Divorce

Divorcing when you have a business requires equal parts finesse and diplomacy. Some couples choose to continue to run the business as a team even after the divorce. If this is what you are planning on doing, make sure that you are well prepared for what is to come.

There are three main priorities that you have to consider in these cases.

  • Who will handle which business components? You and your ex each need to have clear roles for running the business. Deciding this now can reduce the likelihood of problems in the future.
  • How will both people be paid? Decide how profits will be split, as well as which expenses each party is responsible for.
  • What happens when conflicts arise? There are bound to be disagreements when you and your ex work together. Setting up the terms for conflict resolution from the start of the agreement gives you a blueprint for resolution.

For the situation to work, you and your ex have to have trust each other. Neither person can question what the other is doing unless there is good reason. When there are questions, they should be handled privately so that others aren’t privy to any disputes about what is going on.

It is usually best for divorced owners of businesses to present a united front before employees. Setting up your business plan right away can be helpful. It might also be beneficial if you and your ex are able to work through the other aspects of your divorce amicably, as this sets the process of on the right foot.