Divorce rates in the United States have steadily increased for the past few decades. In 2016, there were about 2.1 million divorces in the United States, which equates to about 10% of all marriages. This number increased from 9% in 1990 to 8% in 1980.
There are a few reasons for this increase in divorces. One reason is that people are getting married later in life. The average age for first marriage is now 27 for women and 29 for men, up from 23 for women and 26 for men in 1990. People are waiting longer to get married because they want to be more financially stable and have more stability in their lives before they make a lifetime commitment.
However, while people wait longer to get married, they are also getting divorced more often. One reason is that people have higher expectations for their marriages than they did in the past. With divorce being more socially acceptable, people are more likely to end a marriage if it isn’t meeting their expectations.
However, divorce has its complications. There will be a lot of paperwork to fill out, and you’ll need to ensure that you divide your assets fairly. You’ll need to figure out custody arrangements and child support if you have children. You’ll also need to deal with the emotional stress of divorce. However, the most challenging of it all is when you are running a business.
Running a business while getting divorced can be challenging. You have to juggle the demands of your business with the legalities and logistics of your divorce. However, it is possible to divorce as an entrepreneur. Here are a few things you need to do.
Separating the Assets
While you might be running the business, you do not own it completely separate from the company. The first thing you need to do is to determine what assets are marital and which ones are separate. This step can be tricky, especially if you have a complex business structure.
You’ll need to get a valuation of the business and all its assets. It will help you determine how to divide the assets between you and your spouse fairly. Once you have a valuation, you can start working on separating the assets.
You’ll need to consider the tax implications of selling or transferring ownership of assets. You’ll also need to consider the impact on the business. For example, if you own a restaurant, you might not want to sell the building because it would be difficult to find another ideal location.
However, if you can’t agree to divide the assets, you might have to sell the business and split the proceeds. This option is usually only used as a last resort.
Dividing the Debt
Another critical aspect of divorcing as an entrepreneur is dividing the debt. You’ll need to figure out who will be responsible for paying off any debts incurred during the marriage. This includes business loans, credit card debt, and other debts in both of your names.
You’ll also need to consider how this will affect your business. For example, if you have a joint business loan, you’ll need to figure out how to keep making payments on the loan if your spouse is no longer involved in the business.
Debt can be one of the most challenging aspects of divorcing as an entrepreneur. You’ll need to figure out a way to fairly divide the debt so that both parties can move on financially.
Transferring Ownership
If you’re the business’s sole owner, you’ll need to decide what will happen to the company after your divorce. You might want to sell the business and split the proceeds. Or you might want to transfer ownership to your spouse.
If you decide to transfer ownership, you’ll need to determine how much your spouse will own. You’ll also need to figure out how they will be involved in the business. For example, will they be a silent partner or have an active role in the industry?
Unfortunately, your partner might not be willing to let go of the business. You might have to sell the business and split the proceeds in this case. To ensure you control the company, you might have to hire a divorce attorney to help you negotiate with your spouse. The strategy ensures that you are well-represented and that your spouse cannot take advantage of you during the divorce.
Making It Work
Divorcing as an entrepreneur can be challenging, but it is possible to make it work. You’ll need to figure out how to divide the assets and debts fairly. You’ll also need to decide what will happen to the business. With some planning and coordination, you can successfully divorce as an entrepreneur.
