Going through a divorce is a challenging situation in just about all cases. However, it gets markedly more difficult when you have a small business. You have to worry about your personal life but you also have to think about the business and the employees who depend on the company for an income. Balancing this can take a lot of work.
There are a few things you need to think about with respect to your business during a divorce. Your spouse's involvement, any prenuptial agreement and similar points should all come into the picture.
If you had the business when you got married, you may have had a prenuptial agreement done. This document may have outlined what will happen with the business. You should review it to determine what it says so that you can make a plan for the company.
If you didn't have a prenuptial agreement that covered the business or didn't have the business when you got married, you might have established a postnuptial agreement. This would govern the business if that's the case.
Another possibility is that there are business agreements that will determine what is going to happen to the company in the event of a divorce.
Your spouse's involvement
It can be difficult to divide a business that both spouses are involved in. If both spouses have roles in the company, you can set out a clear arrangement for how these will remain in place. This must include the financial information for income and expenses, as well as a clear outline of who is responsible for what and how disagreements will be handled. The more detailed this document, the better the situation will work.
Fate of the company
If there is no way that you and your soon-to-be ex can remain in place at the company, the fate of the business might be uncertain. One spouse can buy the other one out. The business might be sold to a third party. You may have to close it completely. These options can be hard to think about, especially since you have worked so hard to build up the company.
No matter what you plan to do with the business during your divorce, make sure that you think about the employees. If you believe you have to close or sell the company, let them know as early as possible so they can plan accordingly. Your legal advisor in Arizona should be able to help you create a plan for moving forward regardless of what is going to happen with the business.