Running a business in New York is no easy task. Obstacle after obstacle can really take a toll on a business leader, especially if they’re equal partners with someone else. Often, it is not the state of the business that ends a partnership but rather the desired direction each person wants for it. When the decision has been made to spit the company, the process can be rather daunting. The following includes a few pieces of information that you should know before filing for a business divorce.
When your business partner is your spouse
Spousal business partnerships are becoming more common. Because bank accounts and credit scores are already connected, it can often seem the easiest way to apply for a business loan. However, not all stories have a happy ending. What happens when you’re going through a divorce and attempting to split the company? Acquiring the services of a family law attorney immediately may better equip you when certain requests are made, such as a QDRO or qualified domestic relations order.
Get the tough decisions over with
When two people are splitting a company, you are going to run into a couple of tough decisions, one of those being the splitting of employees. However, the distribution of employees doesn’t always benefit everyone equally. Due to the split, your company is much smaller, which means you may not need the additional help. Therefore, it is recommended to make the tough decision early on to properly give notice and terminate employees who may not fit your new business model.
When splitting a business, there isn’t just your business to think about but also your partner. How much will they take? What is the value of the company now? All these questions may be answered with the help of an experienced legal team.