Conducting business and processing a divorce are separate endeavors that require significant time, effort and financial resources. When taken on simultaneously, they can be profoundly disruptive to both company and family members.
Thus, it will help if soon-to-be ex-spouses learn about the potential obstacles they will confront. Doing so allows them to prepare and prevent devastating consequences.
Facing business struggles while processing a divorce
Under Illinois’ equitable distribution rule, a business may qualify as a marital property if formed, owned or acquired during marriage. Each party can claim their fair share of the company, which does not necessarily have to be a 50/50 split.
Divorcing couples may settle on how to divide the business on their own or by taking it to court. Unfortunately, as the company continues to run amid the divorce, parties may run into the following difficulties:
- Management adjustments: A spouse may have more decision-making control over the company’s direction than the other party. If each spouse has different sets of duties, tasks may pile up and unequally burden one party more than the other. Making compromises to make things work can move the company forward.
- Operational changes: It may take time and concentration away from work to accomplish documents, coordinate with legal advocates and make court appearances. Business owners may restructure their systems by delegating responsibilities and adjusting schedules.
- Troubled relationships: Business partners, investors, clients and employees may feel the negative impact of the disintegrating marriage. Open communication may protect reputation and uplift morale.
- Childrearing needs: With the business and divorce consuming so much time, funds and energy, the child may feel the absence of their parents. An effective co-parenting plan can create a reasonable schedule that prioritizes the child’s development.
- Emotional and mental strains: Both parties may experience an overwhelming pressure that can affect their well-being. Having a support system can help keep them grounded and hopeful.
While this isn’t always the case, most couples would sell the business and split the profits. Sometimes, the more financially stable spouse pays the other with their share’s equivalent.
In the end, the company’s future depends on how much each party is willing to assert their stake and fight for fairness.
Balancing personal and professional lives
Most businesses are a primary source of income. So, both parties must consider how dividing it can affect the family’s future. For the child’s sake, divorcing spouses may develop a sustainable business plan that caters to their personal and professional problems as parents and business owners, respectively. However, to achieve balance is a complex undertaking. A dedicated team can assist in legal intricacies.