Many thoughts run through a spouse’s mind when considering the end of a marriage. Because no one gets married to one day divorce, this can be a very emotional and overwhelming thought process. Nonetheless, married couples in Virginia need to be pragmatic when it comes to understanding how divorce could impact them. This is especially certain for those that own and operate a business, as a divorce could negatively impact this business.
While a business could be impacted by a divorce in many ways, three possible impacts will be discussed. First, a divorce could disrupt the day-to-day operations of the business. This means that the process itself has a tendency to pull one away from their management responsibilities. Divorce is time consuming, demanding and emotional. It can cause one to lose focus on the daily operations and their employee in general.
Next, a divorce could impact business partners and employees. If one’s interest in the business is subject to division in a divorce, this could result in a former spouse becoming an uninvited partner. Thus, it is important to consider situations such as the division of stocks, one spouse leaving the business or both spouses maintaining their roles in the business after divorce. These situations could greatly impact major business decisions, the ability to maintain productivity and preserving the trust of employees.
Finally, a business may need to be dissolved due to a divorce. When spouses are equal partners, they may agree to dissolve the business because they cannot continue the business together. Also, if one spouse is entitled to a large cash payout for his or share of the business and the other spouse does not have the liquidity, selling the business may be the only options.
Navigating the divorce process can be challenging, rightfully so. It can be a confusing time with emotions running high. Even when it is not a high-conflict dissolution, the many what-ifs each spouse is faced with can create unexpected issues during the division of property. Thus, it is important to understand what rights and options are afforded to those going through the divorce process. This not only helps one move forward with the process but could help to avoid post-divorce issues as well.