When some people started on the road to marriage, they also may have embarked on the road to owning their own business together. Both were big decisions that could have huge emotional and financial payoffs if all things went well. However, sometimes, things just don’t go as planned. The marriage ends up being on the rocks and eventually being impossible to salvage in California. A divorce doesn’t mean that the business has to shut its doors, though.
If the couple would like to keep the business alive, particularly if it is both of their livelihoods, they can still maintain their professional relationship even after dissolving their marital one. If the two do decide to keep working together, a change of roles likely will have to take place. For instance, if one person owns the business, the other may not be able to remain a partner or board member.
The divorce process can include developing a new role for this second party. If developing a new role for him or her, it is wise to make sure that this individual’s power to make decisions is limited. This keeps future disputes from happening. If the two cannot agree on how to move forward with the business together, it may be wise for one of them to leave the business in order to keep the establishment moving forward as necessary.
Starting a business can be an exciting endeavor, but it can also cause a huge burden if two married individuals end up fighting over this major asset during a divorce proceeding. However, it certainly is possible to divide this and other marital assets in a manner that is satisfactory to both individuals if the couple can find common ground at the negotiating table. Those individuals who can cooperate to address such issues might be in the best position to reach a just and lasting settlement in California.
Source: The Huffington Post, Love Is Risky Business: 5 Tips to Legally Protect Your Company & Assets, Lisa Honey, Feb. 11, 2014