Your decision to divorce may impact your business, its organization, and its future. As a result, you may need to adjust your methods to fortify and preserve your company despite the changes in your personal relationship.
You may need to collaborate with your spouse to determine the fate of your shared business. Part of these negotiations may impact your succession plan.
Preserving culture and values
Succession planning enables you to strategize for the future leadership needs of your company. According to Deloitte, 86% of business professionals rank succession planning as an urgent priority. Depending on the professional relationship you and your spouse have, the dissolution of your marriage may alter the organization’s trajectory.
Regardless of the settlement strategies at your disposal, you may desire to preserve your company’s culture and values. Adjusting your succession plan can help you verify that the company leadership and its future remain intact.
Evaluating settlement strategies
You and your spouse may decide to continue operating your company together. Another option is to sell the company and split the profits. You could also buy your spouse out and maintain full ownership of your company. Assessing your loyalty to the company and your desire to remain a part of its future can help you determine which settlement strategy will provide the greatest benefit.
Updating your succession plan to reflect any changes can preserve your wishes for the company’s future. Making changes and neglecting to update and sign formal documentation can cause disappointment and confusion later on. If carefully navigated, you can minimize the impact of your divorce on your professional endeavors and the sustainability of the company you have worked so hard to build.