Getting divorced is never an easy thing to do—there are many challenging logistical and emotional issues that must be resolved. For business owners, there is another layer of complexity in the divorce process. You need to know how to effectively end your marriage while also protecting your personal interests and the future of your company.
Here, our Mankato family law attorneys offer four tips for business owners who are preparing for a divorce.
Be Proactive: Get Organized Now
How do your business records look right now? If they are disorganized, you could have a problem on your hands. One of the first steps that you can take to divorce proof your business is to carefully gather and organize all business records. The more information you have, the easier it will be to find solutions and protect your rights.
Try to Separate Your Professional Life and Personal Life
As most business owners know well, running a company is a time-intensive endeavor. When you are always busy, it can be difficult to separate your professional life from your personal life. In divorce, business owners should work to create that separation. Try to keep your divorce out of your business—both in your day-to-day activities and on paper. The more you can create a clear distinction between yourself and your business, the easier it will be to protect your company.
Get a Comprehensive Business Valuation
Depending on when your business was formed and how much value it gained during the course of the marriage, it may be deemed a marital asset. Under Minnesota law (MN Statutes Sec. 518.58), marital property must be divided in an equitable manner. Each spouse will receive their “fair share” of the assets.
You will not be able to effectively protect your business in a divorce unless you know exactly how much it is worth. It is strongly recommended that you get a business valuation as early as possible in the divorce process. Make sure you seek a comprehensive valuation: Assets, liabilities, and cash flow should all be considered.
Look for a Collaborative Solution that Helps to Protect Your Business
Unfortunately, a nasty divorce has the potential to cause serious damage to a company—especially a partnership, professional practice, or small business. In the worst cases, a divorce dispute can even turn self-destructive. It is not in either party’s interest to see the company damaged. At Kohlmeyer Hagen, Law Office Chtd., we help Minnesota business owners find effective, low-conflict solutions that best protect their personal interests and the future of their company.
Call Our Southern Minnesota Family Lawyers for Immediate Help
At Kohlmeyer Hagen, Law Office Chtd., our skilled Mankato family law attorneys offer cost effective, client-focused representation. We will protect you and your company. If you are a business owner going through a divorce, we are here to help. For a completely confidential initial consultation with an experienced family law attorney, please contact us at 507-625-5000. We represent clients throughout Southern Minnesota, including in Courtland, Lake Crystal, St. Peter, and Janesville.