As a woman business owner, going through a divorce can be an incredibly challenging and stressful experience. Not only do you have to navigate the emotional and financial complexities of ending a marriage, but you also have to balance the demands of running a business. This can be overwhelming, to say the least.
Divorce can be an emotionally difficult process for anyone. Along with the usual challenges of asset distribution, child custody negotiations, support determinations and the disruption caused by the divorce process itself, there is the real possibility that a woman business owner may have to share her business with her soon-to-be ex-spouse.
If the spouse has contributed to building the business, either by holding a position within it or by providing support at home while the business owner worked, then sharing the asset may not be an issue. However, if the woman business owner has been carrying the majority of the responsibilities for running the household, raising children, and building the business, the thought of having to share the value of the business can be hard to accept.
It is important for women business owners to be knowledgeable and prepared to achieve the best possible outcome from their divorce. Here are some insights to consider:
1. Your spouse may be entitled to more than you think.
Some women believe that if their spouse isn’t a titled partner, they won’t receive any distribution of the company’s assets. However, this isn’t necessarily true. In general, spouses may be awarded a distribution of assets related to the other’s business. If there is no prenuptial or postnuptial agreement in place, then the court will have to determine how much, if any, the spouse will receive. Be prepared with timelines and documentation of both financial and nonfinancial contributions to the growth of the business to support your argument for what is fair.
2. Preparation and the right mindset can help you hold your ground.
In equitable distribution states, unpaid work and the value it brings to the family can impact the distribution of the assets, including the value of the business. Women can argue that the duties they fulfill beyond their financial responsibility of generating income should be taken into account as the court evaluates what proportion of the marital assets each spouse is entitled to retain post-divorce.
3. Custody negotiations don’t have to be difficult.
As the maternal presumption fades in favor of a presumption for more equal parenting time, biases against working moms are fading too. Work-from-home and flexible-schedule work models also help working parents counter arguments that successful careers impeded involved parenting. Pandemic work environments gave rise to a new understanding of how professional and personal lives can mesh seamlessly. Evolving perspectives are likely to work in favor of mom business owners, bringing them onto a more even playing field in negotiations.
4. Your spouse’s employment at your company can trigger special considerations.
Business owners who hire their spouses without putting safeguards into place may find themselves facing unfortunate repercussions in court. A non-titled spouse who has not been paid at market rate can argue for a larger share of the business. And, although getting a divorce doesn’t necessarily mean you must terminate your spouse, if you do, understand that you may be responsible for paying more support until they secure another (equivalent) position.
5. Hire a Divorce and Empowerment Coach when you are just thinking about divorce.
It’s easy to get lost in the chaos of divorce proceedings and lose sight of your personal and professional goals. This is where a divorce and empowerment coach can make a significant difference. They can save you money, time, headaches, and pain. A divorce and empowerment coach is a trained professional who can guide you through the overwhelming process of divorce while empowering you to make sound decisions for your future. By hiring a coach, you’ll have an advocate in your corner to help you navigate the legal, financial, and emotional aspects of divorce. They can help you set and achieve goals for your personal and professional life, create a clear vision of your future, and provide you with strategies to overcome obstacles. As a woman business owner, investing in a divorce and empowerment coach can be one of the best decisions you make during the divorce process.
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Beverly Price, certified Divorce and Empowerment coach, and podcast host, combines divorce and empowerment coaching to provide education, support, and insight to guide women along the entire divorce process, and to conquer its emotional, technical, financial and logistical challenges. She serves women in three groups 1) those contemplating divorce, 2) those in the legal and financial process, and 3) those who are divorced, but want a happier, more fulfilling life.
She has a personal history with divorce, co-parenting, domestic violence and more. Combining this personal experience with her training, professional certifications and business knowledge, she can help women by supporting them along their journey, helping them to work through resentments, challenges of co-parenting, time management, communication, fear, sadness and shock.
When she embraced her authentic voice and her own power, she went from self-doubt to self-love – and that is what she wants for her clients. It is possible! You can contact her at herempowereddivorce.com
