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Divorce 101: Saving the business

Things were great in the beginning. You and your wife met in college at the business school mixer your junior year. You each finished your accounting degrees, spent endless nights studying for the CPA exam while working ridiculous hours during tax season, and finally opened your own practice in Rhode Island.

All the hard work was paying off, the business has been successful, you paid off your student loans and you were on the verge of being able to cut back on the hours you have been spending in the office. While the two of you have been building your company, the marriage has been neglected.

You have both decided to go your separate ways as a couple.

Fortunately, you both agreed to delay starting a family while you focused on the business. However, that doesn't mean you'll escape a custody battle. Now you have to figure out what to do with the accounting practice you both worked so hard to build.

Divorce can be very complicated, especially when it comes to valuing marital assets. Read below to for helpful tips on how to save your business during a divorce.

Start a conversation

Once the decision has been made to divorce, it's time to sit down and have a conversation about how to deal with the business. Do this early on, before you start any official proceedings in negotiating the divorce settlement.

As a couple with no children, the business you both built will function like a child. You will both want to do what is best in order to protect it. Take the time to make a list of options that you both agree to before you travel too far down the divorce road.

Choosing an attorney

When deciding on divorce attorneys, you and your wife should find lawyers that understand your unique position and are committed to keeping the business open and operating smoothly during the settlement process.

Your goal is to keep your business from closing as a result of the divorce.

Consider a collaborative divorce

You and your wife have been approaching the impending divorce in an amicable manner. Taking part in a non-confrontational process can save your business and your relationship as friends.

Using this form of divorce can be difficult, as it requires you to fully manage your emotions and attempt to avoid litigation and conflict.

Don't be afraid to explore other options

Remember to stay open to alternatives during the negotiation process. Keeping the business open during this transition is your number one priority. The first option to do that may not be the most optimal.

Take the time to plan and allow yourself to explore multiple scenarios in order to keep your business fully operational.

Divorcing with a family owned business can be a complicated procedure. Take the time to properly understand your options when it comes to closing the practice, dividing it, or continuing in a position of joint-ownership.

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