5 common challenges when running a business during divorce
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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.
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:
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.
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.