When you're faced with a divorce, how do you stop?

Lead: Joining a couple is at the same time partnering a business, it may be in the face of the divorce process may become more difficult. How to properly handle, and rationally split the two people closely intertwined feelings and careers, so as to avoid Shing?

There is a good reason to urge us to heed the old saying: Do not mix work and life together. Because there are a lot of spouses who happen to be business partners (according to the latest US census data, about 3.7 million companies are likely to be the case), and the resulting divorce wars can put companies at risk at any time if they are in the face of emotional breakdown. Charlie Moore, founder and executive chairman of the San Francisco rockets firm, is committed to providing online legal guidance on issues such as prenuptial agreements and corporate entrepreneurship. So he is definitely the ideal person to discuss the topic of a business partner breaking up. The following are some suggestions for how to mitigate the negative effects of divorce on businesses.

To be rational, to learn to compromise

"Divorce is obviously an emotional and exciting thing," Moore said. The messy divorce process is likely to tarnish the brand and may have a negative impact on the relationship between the business and consumers. "The divorce case between the Los Angeles Dodgers ' former boss, Frank Mccott and his wife, is an example of concern. The incident further weakened his relationship with the fans and eventually led him to sell the baseball team. Before a partner marries-or when a businessman plans to bring his fiancee or fiance into the business-Moore advises them to sign a prenuptial agreement that is informative. These include how to distinguish between individual property, business partnership, and succession planning, while determining the role of both parties in the company. This kind of conversation is often difficult, Moore admits, but very important, which is tantamount to buying insurance for something else in your daily life. "If the possibility of flooding the business reaches 50%, you need to buy a flood insurance." ”

Hire an Independent valuers

In divorce, valuing a business is one of the first things to happen. If the partner holds an unequal share of the company's shares, the value of the company and the method of valuation used-regardless of whether the valuation is based on assets, income, market comparisons, or discount laws-may be the subject of a dispute between the two sides. Moore believes the hiring of independent evaluators is the key to avoiding disagreements between the spouses over the company's valuations. "The main owners tend to overestimate the value of the business, not the main partner," he said. ”

Understand local laws

When evaluating value, the court often observes two common "creditworthiness", namely "corporate credibility" and "personal credibility". "Personal credibility is the reputation of a partner or the role of asylum (sometimes referred to as a ' business directory '), and corporate reputation is the corporate reputation," Moore said. "The distinction between the two types of credit is different in the states. Some states make no distinction and allow valuations of both, while many states exclude "personal credit", but consider "corporate credibility". At the very least, Moore says, you should be aware of your legal framework: "Your lawyers and valuers should agree on strategies and valuation methods in order to achieve the best results for you, while keeping a close eye on the current case and the evidence rules and regulations that might affect the outcome." ”

Consider the issue of role change

When a spouse is in business cooperation, divorce will undoubtedly lead to a change in the role of one party in the company. In many cases, a spouse may give up his or her board seat in the company, as well as an executive or partner status. So, figuring out a transitional approach is an integral part of the divorce process. "If a spouse has a new role, in order to prevent future disputes, it is necessary to clearly define (potentially limiting) his or her decision-making power in the company," Moore said. "Whatever you do, you have to be realistic about your ability to work together in the future," he said. "Most importantly, in order not to interfere with the normal operation of the business, couples in the process of divorce must carefully plan their future working relationship."

Be open and transparent

In many divorce cases, couples are often unwilling to disclose openly the amount of assets they hold or the value of their business. The most common way to hide assets is to repay false debts or convert cash into "movable property" such as artwork and jewellery. "Don't try to hide assets or do anything that doesn't match your personality, such as a sudden surge in spending or a change in business models," Moore warns. "Doing so would send a dangerous signal to the court that could put your company at risk or make you face huge fines." ”