How Can You Leverage Your Years Of Knowledge?

To manage your energy during this difficult time, I suggest you prioritize your tasks and delegate what you can in order to keep your business going without becoming overwhelmed. One of the best ways to do this is to identify the areas in your business where you make the most income that require you to invest the least amount of time. Another strategy to ensure your business can continue during this stressful time is to have a solid passive income stream. Knowing that your business can still generate income without you at the helm can relieve a lot of financial stress. Even if you don’t have something serious going on in your life, it’s nice to know that you can take a vacation and you’re still earning money. Take some time to think about your business and what your priorities would be if you were dealing with a major change in your personal life. Do you have appropriate systems in place to weather a storm? If not, make a list of where you see the risks in your business and come up with an action plan to address those risks. Even if you never face a divorce, chances are that at some point in your business life there will be a time you’ll be glad you took this preparatory step. If you are proceeding with a divorce, try to settle out of court if at all possible. Settling out of court gives you the greatest control over the outcome. When you allow your case to go to court, the judge has the final say about what happens to all assets, including your business. Did you know that you could actually be forced to sell your business? It may seem unfair, but it’s a risk that you take when going to trial.

That's What It Takes

There are several approaches to settling out of court that you might consider. I’m an experienced mediator and a big proponent of mediation. It is statistically one of the most affordable options and allows you to maintain your privacy so that your competitors don’t get access to your business finances. It also gives you significant control over the outcome. Collaborative divorce is also a great way to get the professional expertise you need while committing to avoiding the courts. Regardless of the process you choose, when settling outside the courts, there are more opportunities for thinking outside the box and creatively dividing assets. They receive significant training and continuing education on this very topic. I always encourage my clients to focus on the big picture when negotiating assets. If your top priority is keeping your business intact without involvement from your spouse, consider which marital assets you would be willing to give up in exchange. I recognize that sometimes there aren’t other assets to give up in exchange for retaining the business, but that still doesn’t mean that all is lost. In one case, the wife had an accounting business that was established and grew to its current size during the marriage. As a result, all of the business was considered marital property.

All Quiet On The Western Front

For this particular couple, the business was by far the largest asset in the marital estate. In this case, they were able to work out a property settlement note that allowed the wife to continue running her business as she had been and pay her ex his equity in the business over a period of six years. In another case, the husband and wife worked together in the business. It was an entertainment company where the husband handled the sales and the wife handled the operations. The wife wanted to work somewhere else, though. They got along well enough to maintain the ownership, but they didn’t want to work together on a daily basis. They created a formal business succession plan with alternatives if the transition did not go as planned. Creative settlements are only possible when you have a solid understanding of your whole financial picture. I’m not just talking about your business now. It’s important to know where your family finances stand as well. If you are not currently involved in the family finances, make it a point to become involved. Attend all meetings with your accountant and your financial advisor.

Look To Your Heart

Ask questions and be informed. If your spouse is unwilling to change, get your own. It’s not ideal, but it is important that you feel confident that you’re getting your questions answered. As I said before, while I love helping my clients plan for the best, I also always want to make sure that they are prepared for the worst. However, even if you feel you are facing the worst and are forced to sell or close your business as a result of a divorce, you are still going to be okay. Remember that it was your hard work, determination, and relationships that grew your business into the success it is today. Remember that you know how to succeed, and you will do so again. As the saying goes, When life gives you lemons, make lemonade. I want to encourage you to use the opportunity as a fresh start. As a savvy mompreneur, you’re not wet behind the ears. What would you do differently this time around? How can you leverage your years of knowledge, experience, and relationships to build an even more successful business? Think about how your industry is changing and how starting anew could put you at the forefront of innovation. Is there a complementary business that you could start that would leverage your existing audience? Take some time to think about where your industry is going. Five years from now, do you think your business will look the same as it does today? Are there product or service lines that you offer that will be obsolete? How would you do things differently if you were starting your business from scratch today? I want you to pretend that you have lost your business and are preparing to launch something new. What information from your existing business would be helpful to hit the ground running?