If you have one or more married business partners, there is always the chance that one of them may divorce. Regardless of how much your partner tries to keep work and home life separate, be prepared for it to have an effect on the company.
Here are some things that could happen.
They are distracted from work
Going through a divorce is a monumental upheaval for most people, and many find it hard to think about much else for a while. Think about the duties your business partner has and whether it may be helpful or necessary to redistribute some of them until things settle down.
For example, maybe your partner is the one who attends trade events and there is one coming up next week. At a time like this, they may prefer to be close to their kids rather than in another state promoting your product. It’s also likely they won’t be in top-selling form either.
Their divorce settlement could affect things
Your partner comes in ashen-faced and explains that their spouse is refusing to go for the cash and house settlement they are offering. They are pushing for a share of the business as well. It’s certainly possible that a court could give them this if they build a solid enough argument to push for it.
You might find yourself with a new business partner. You might find the business is left with less liquidity as your partner is forced to give shares to their spouse. You might just need to spend time preparing paperwork and hosting accountants as your partner’s spouse tries to assess what the business is worth.
Understanding your legal options can help you prepare for any changes that may be necessary. Having sound professional guidance can help you do that and protect your business.