• Seek legal advice to understand the implications of your partnership agreement before negotiating your assets.
• You must determine the value of the business through asset-based, income-based, or market-based valuations.
• Focus on assets essential for business operations and negotiate a fair exchange with your partner.
• If divorce is on the table, consider hiring a divorce lawyer to ensure a fair and equitable division of assets.
• Plan for future success by creating long-term strategies, short-term objectives, financial strategies, and marketing strategies.
Starting a business with a romantic partner can be an exciting journey filled with love and hope for the future, but sometimes, things don’t go as planned, and relationships fall apart. When that happens, you have to think about dividing your business assets, which can be challenging.
You might have been the perfect match for your business needs, but maybe, you are not the perfect match in your personal life. However, reaching a fair settlement of business assets becomes a priority if you fall out with your business partner. Here are a few tips for settling business assets after falling out with your partner for couple-owned businesses.
Seek Legal Advice
The first step in dividing business assets after a fallout is to seek legal advice. You need a lawyer who specializes in business structures and legal partnership agreements. Every agreement has its unique features. You must be aware of the legal implications of your partnership agreement before negotiating with your partner.
Determine the Value of the Business
The second step is to determine the business’s value. You need to agree on a common business value that is fair to both parties. Business valuation can be done through asset, income, or market-based valuation. Once the value is determined, you can start negotiations for the assets’ division.
Focus on what is Essential for the Business
If you cannot agree on some aspects of the division of assets, focus on what is essential for the business’s survival. You must prioritize the company’s success over personal gain. Therefore, you should allocate the assets necessary for the business’s operations, such as essential equipment or intellectual property, to the partner most capable of running the company effectively.
Negotiate and Compromise
Once you have defined the business’s value and the essential assets, it’s time to start negotiations. You need to be open to compromise and work with your lawyer to create an agreement that works for both parties. You may want to keep some non-essential assets, and your partner might want something similar. Try to identify what you can let go of and negotiate a fair exchange.
Additionally, if you and your partner’s falling out leads to a divorce, you should consider hiring the best divorce lawyer you can find. They can help to ensure that the division of business assets is fair and equitable. They might even be able to help you reach a settlement agreement with your former partner before the divorce proceedings begin.
Plan for Future Business Success
The last step is to plan for the future success of the business. You may have fallen out with your partner, but the company must survive. Therefore, you need to create a plan for the business’s future. This plan should detail the following factors:
Long-term strategies
Your business’s long-term strategies, such as its mission and vision, should be clearly defined and understood by both parties. You should also identify the roles and responsibilities that each of you must take.
Short-term objectives
Your short-term objectives, such as tasks and activities, should be timed and monitored to ensure a smooth transition. Regular communication between both parties can help with this process. You should also determine the roles and responsibilities of each partner.
Financial strategies
The financial strategies should be clear and well-defined. Both parties should agree on the division of profits and losses, as well as other financial matters. You should also consider what to do with the assets that remain after the division.
Marketing Strategies
You also need to create a plan for your marketing strategies and how you will reach out to customers. Both parties should have an equal say in this process and agree on the best approach to market the business.
By developing a plan for the business’s future after falling out with your partner, you can ensure that the company survives, no matter what.
The process of settling business assets after a falling out with your partner is never easy, but it can be done. The key to success is seeking legal advice and getting a qualified lawyer who understands the unique features of your partnership agreement.
Additionally, you should determine the value of the business, focus on essential assets for operations, negotiate and compromise where possible, hire an experienced divorce lawyer if necessary, and plan for future success. With these tips in mind, you can ensure that both parties get what they deserve while ensuring that your company survives despite any personal differences between yourself and your former romantic partner.
