If your spouse owns a business, or you own it together, you may be keen to get a share of it in the divorce settlement. Even if there is no pre or post-nuptial agreement saying you can’t, sometimes it is better to just forego it.
Here is why:
#1. You separate more fully from each other
It’s a little hard to split fully from someone when you still have business ties. Even if you have no involvement in the day-to-day running of the company, tension can arise if it still holds you together. For example, you may be keen to get your annual dividends and find it frustrating if your spouse is running late with the figures. They may get frustrated about you asking for them.
#2. It leaves you free to pursue other assets
If the business is eligible for splitting in the divorce settlement, a court will view it in terms of the overall total. Permitting your spouse to keep the entire company makes it more likely you will get another valuable asset, such as the house.
#3. Investors or other partners in the business may prefer it
An investor may have second thoughts about investing in a business if they hear it is jointly owned by a recently divorced couple. They might fear personal conflicts could affect the company. Partners may prefer not to have to tiptoe around certain matters for fear of upsetting one or other of you.
While you might not care about your spouse succeeding once you divorce if you have children together, it’s in their benefit that they do. It’s also going to reduce the financial burden of bringing up the children on you.
There are many decisions to make when divorcing. Seeking legal guidance can help you make the right ones.