After a divorce, many things come to an end. Financially, many ties are severed, and this can be devastating to a small business owned by the couple or one of the spouses. According to Reuters, the cost of a divorce and the time away from a business to handle divorce-related issues can easily sink a venture.
In some cases, divorce and small business troubles may be even more interrelated, the news source found. The difficult economy has left many entrepreneurs working long hours to keep their businesses afloat, which can have a negative impact on family life. Additionally, financial struggles can also strain a relationship.
However, a small business does not have to die along with a marriage. A family law attorney told BusinessWeek that business owners must make wise decisions as the divorce proceedings continue. For example, all finances will be an open book, so entrepreneurs must not try to conceal anything financially. These actions could come back to haunt them. Additionally, hiring a financial expert could be beneficial in the long run.
“It’s also important to hire a savvy forensic accountant who can provide in-depth understanding of the applicable law and who has the expertise to testify in court,” the lawyer explained.