How To Run A Family Business With Your Ex-Spouse
Statistics claim that the United States alone has about one million businesses jointly run by couples. At the same time, as many as 9,00,000 divorces get filed each year in the country. Now, that also means that several marriages where a husband and wife run a joint business form a component of their marital assets will also end in divorce. But there need not be any dissolution of a business partnership just because the marriage has ended.
If a marriage gets dissolved and there is an involvement of a jointly-run business, then the options available are limited and may be associated with their own set of complications, Firstly, such a business could be sold; secondly, any one of the former spouses, who is a partner too can buy the share of the other partner; thirdly, the divorced couple can also continue running the business jointly.
Check out the following tips if you and your ex-want to run your jointly owned business even after your split.
Mutual recognition is crucial
In order to run such a business in an effective manner, both the parties should respect and realize the contributions made by the other party and acknowledge that each one of them added their valuable skills to their business. They must also recognize that such skills still have high importance and will continue benefiting their business in the future. While it is not necessary to praise your former spouse every now and then, it is also important to recognize your stakeholder’s contribution in the jointly-owned business
Role definition is a must
It is possible that the once married couples cum partners may not be attending similar meetings or continue managing the same affairs. When one is looking after business operations and the other partner is into sales, things are manageable. However, if both the partners manage the daily operations of the business, things may not work out. It is a normal phenomenon to find that divorced couples may not see eye-to-eye on several issues. Hence, it makes sense to minimize situations where direct interactions may take place.
Partners should show maturity
There are some behavioral traits, which can help to make this work. When a marriage gets dissolved it is normal for the exes to be not in the best of terms. Hence, it is important for both of them to exhibit more maturity by keeping their emotions in check so that the business benefits at the end.
To stay as business partners even after the dissolution of a marriage partnership may work reasonably well if both the partners work hard and continue contribution in the same manner as they used to while being married.
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In case your divorce is not yet finalized, you could file joint return if you remain married at the end of a tax year or as of December 31. Both...