The effect of a divorce on a business

A divorce will likely affect a business, as the split may lead to a division of assets or could cause an increased level of stress for an owner or executive of a small company if their spouse holds a share of the firm.

Despite a Forbes report that outlined how Kim Kardashian’s divorce may actually help her business, due to the fact that her life will be more exciting as she looks for a new man, non-celebrities may suffer because of a split with their former lover.

In an interview with the National Federation of Independent Business, Alan Schacter, a certified public accountant for Citrin Cooperman, noted that a split can lead to economic problems for individuals if they are not able to remove hostilities with their ex-spouse if an asset division is required.

“You need to put personal differences aside to preserve the asset,” Schacter told the news source. “This is an emotionally charged process. Everyone wants to do it peacefully.”

According to the NFIB, the general rule is splitting business equity “50/50” and each spouse will likely retain an equal share of the assets.