Nobody goes into marriage – or business – expecting it to end badly. However, if the Family Court determines your ex-partner had a material impact on growing your business you could be facing a large payout or worse.
Divorce can have damaging effects on small business owners, especially if the separation comes unexpectedly some years after starting a business.
Perth small business owners already face a tough road to build their enterprise. Not only does divorce add stress that you take to work, you could also face losing all or part of the business unless you are prepared.
How to safeguard your business
We understand this can be an emotionally difficult subject to discuss so our family lawyers can offer advice on drawing up a prenuptial agreement that protects both parties in case of divorce. You can find out more information on the financial agreement guide here.
Keep clear and detailed accounts
Maintain separate business and family accounts and avoid using business funds to pay for personal expenses.
Have a plan
If you think your relationship might be in trouble, consider ways to ensure you maintain control of your business. This may mean playing a larger role in the daily management of the business.
Get a professional valuation
Knowing what your small business is worth, and could be worth in the future, will help you understand your position during a divorce.
Forfeit other assets
To retain 100% of the business you may need to compromise on other jointly owned assets. Work with your divorce lawyer to identify what is most important based on a fair valuation.
Get the right support and advice
With so much information available it is easy to be misled by what you read or hear. The truth is no two separations are the same.
Find out more about your financial position in case of separation with a free 15-minute consultation with a reputable Perth lawyer, or read more on our website.