Married couples are accustomed to sharing a lot of things. Many serious relationships involve raising children together, buying a home and sometimes, owning and running a business. In the event of a divorce, it takes time and special consideration when sorting out child custody and division of assets. The process alone is complicated, however, add a business into the mix. Is your small business worth the fight?
A business is likely one of the largest assets in a marriage. Both spouses have unique ties to the business. Often one spouse takes care of matters at home while the other spends time on running the business. Other times, each spouse may take turns or work closely together.
In some cases, both spouses feel like they deserve compensation during a divorce. Unfortunately, there's no simple solution to this situation. Determining if your small business is worth the fight can be challenging. There are a few things you should consider before battling it out, such as:
- The value of your business. Early on, preferably, figure out how much the business itself is worth. Smaller businesses may have the value of $50,000 or less. It's important to consider how much your divorce case will cost, and make sure you won't lose money in the end. You and your spouse can also save money by using the same business valuation professional.
- The handling of your divorce. The cost of a divorce heavily depends on the type. Mediation is oftentimes less expensive. In some cases, when couples don't have children, a simplified dissolution of marriage also cuts out some fees. You and your spouse may want to consider an early settlement before bringing the fight to court.
- The best option for your business. Lastly, consider what is best for your business. It's of no use to fight for a small business in court, and realize that the business is failing due to conflicts. Just like you want to make good personal decisions, aim to make healthy business choices, as well.