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Divorce could impact business dealings

On Behalf of | Jan 11, 2022 | Family Law

Divorce may prove to be a devastating experience even when it becomes best for both spouses to separate. Personal and professional lives will likely intertwine between married couples, creating complex concerns during the process. Those with business interests in Virginia may wonder how divorce affects their enterprises. Some may walk a delicate balance to ensure they provide proper attention to both the divorce proceedings and their businesses.

Divorce and the effect on a business

Virginia falls under the category of an equitable distribution state, meaning the court decides what is fair when dividing marital property. One spouse may receive the entire business, or there could be a 50/50 split, among other decisions. The particulars of specific divorces will vary, and so will the results.

Likely, the person most involved with the business wants to see the company remain on a stable financial footing during the proceedings. Divorce matters could drain attention and resources, making running day-to-day operations challenging. Perhaps bringing in a third party to help run the operation could help.

Others might find it advisable to put the business into a trust. Doing so may seem complicated and confusing, especially to someone unfamiliar with trusts. However, the process could keep the business on the right track.

Additional issues with divorce and businesses

Divorcing business owners might need to address other responsibilities. Taking steps to put oneself on solid financial footing could help since additional costs might be required to keep the business in good shape during the divorce process.

Family law statutes allow for postnuptial agreements. Those lacking a prenup may explore options after the marriage starts.

Business owners and executives might wish to explore mediation. Doing so might result in an agreeable settlement that avoids a protracted court fight.