Divorce can be tricky for businesspeople

| Dec 30, 2016 | Divorce

A Massachusetts divorce is typically emotional and stressful. However, dissolving a marriage can be particularly challenging for people who own businesses. A few tips may help business owners to navigate the divorce process effectively.

In all circumstances, it is imperative that a business owner keep his or her household finances separate from those of the business. Record keeping is a lot more difficult when household and business accounts are combined. In addition, if one’s spouse is working in one’s business, it may be beneficial to phase the spouse out as quickly as possible. This may enable one to hold onto more of the profit and assets of the business.

It is also important for a business person to maintain records of all communications associated with the business. When possible, it helps to follow up verbal conversations with emails to ensure that there are records of all important conversations that have taken place. Paper trails may be helpful for providing proof in the future if anything ends up being disputed. This is particularly true when it comes to documenting the extent of time one has devoted to starting and building the business.

If the parties getting a Massachusetts divorce can see eye to eye, they may benefit from agreeing to arrange divorce mediation, which is typically a less stressful, less expensive and shorter process than litigation. Through mediation, they can work toward a settlement that benefits both parties. If they are unable to accomplish this, a judge will have to make certain final decisions for them regarding matters such as asset division and property distribution.

Source: killerstartups.com, “7 Steps to Take to Save Your Business During a Divorce“, John Rampton, Dec. 27, 2016