California business owners know that keeping a business operational means working more than just a 9-to-5 workday. Often, business owners and their families can feel the strain of having such an enormous responsibility, and in some cases, married couples may not feel able to maintain both the business and the marriage. As a result, divorce may seem like the best option.
As a business owner facing this scenario, you undoubtedly want to do what you can to ensure that your business does not face any unnecessary setbacks from the matters going on in your personal life. However, divorce can affect your business in more ways than you think, so understanding what to prepare for may be wise.
Effects on the business
Try as you might to mitigate the likelihood of your business suffering major repercussions from your divorce, the possibility does exist, particularly if your spouse has a claim to at least a portion of your business assets. In fact, having to dissolve the business entirely is probably the worst-case scenario for a business owner who is ending a marriage. Though this outcome can happen, it is more likely to occur if you and your spouse are also business partners who can no longer work together.
Another way that your divorce could affect your business on a less total but still significant way is interrupting the day-to-day operations of your company. You may need to take time away from your work-related responsibilities in order to attend meetings with your attorney or to make court appearances. Even if you can be in the office, you may need to make time for phone calls or emails relating to your divorce that take your time and attention away from the business.
Effects on others around you
Though you may hope to keep your personal life out of the office as much as possible, it is likely that your business partners and employees will feel at least some effects of your situation. For example, your partners may worry that your divorce could result in financial issues for the company, or they and your employees could be asked questions by appraisers or other parties attempting to complete a valuation of your business for property division purposes.
Hopefully, you can minimize these disruptions by having organized records and delegating work-related duties to trusted parties as necessary. Of course, it is also necessary that you understand the legal effects your divorce may have on your business, and gaining reliable information may allow you to prepare as well as possible.