Advice for Business Owners Going Through a Divorce in Ontario
With divorce rates increasing, more business owners are likely to encounter divorce conflicts in their own lives. Whatever your divorce situation might be, the following advice will help you face it head-on as a business owner.
CONSIDERATION FOR BUSINESS OWNERS GETTING DIVORCE
Who will keep the business after separation?
Divorce is the formal ending of a marriage and going through the legal process to finally end the union. It is also defined as a court order or document that signifies that the relationship has ended.
If both spouses own the business, business owners need to consider which spouse should continue the business after a divorce. A good way to do this would be to assign a tangible value to each of you based on your contributions. You can also have an agreement in place that states if divorce occurs, the business will go solely to one party.
One divorce scenario that is commonly seen in divorce proceedings is the idea of a post-nuptial agreement. This can be drafted to address divorce conflicts between a business owner and their partner. The divorce agreement should be drafted by an Ontario divorce lawyer who understands your needs during the divorce. By hiring divorce lawyers in Mississauga or the GTA, you can be assured that your divorce will be handled professionally and that your business needs will be taken care of. Things such as the value of the business, the assets, liabilities and financial resources held by each partner can be negotiated in the settlement.
How to mentally move forward
If work pressures are building up along with additional stress born from divorce proceedings, consider using time off during the legal separation process. You may have to deal with emotional and financial struggles as divorce proceedings come into effect. Still, support should be readily available from divorce lawyers, accountants, social workers and divorce coaches that will guide you through the process.
What income will be divided in the separation process?
There are specific divorce laws in Ontario that govern how marital property is divided during divorce. What is considered marital property depends on whether you have a pre-nuptial or post-nuptial agreement.
Whose debts and liabilities will be divided?
Ontario’s new divorce laws state that no marital debt is attached to a particular party during divorce if you have a post-nuptial agreement. However, if you do not have one, divorce laws will see that each party is responsible for their own debt.
What is considered a business under divorce laws in Ontario?
Ontario’s divorce laws state that a business should be registered as an incorporated or unincorporated entity, partnership, sole proprietorship, etc. Business divorce proceedings can be complicated as divorcees are required to declare assets and liabilities under divorce law.
Why Hire a Family/Divorce Lawyer?
In Ontario, divorcees with divorce cases that have large incomes or an influx of funds may be subjected to Ontario’s spousal support laws. Divorce lawyers can help in financial matters, such as creating an agreement between both parties to determine who will pay spousal support and how much. Family lawyers can also help with dividing any assets between both parties involved. Typical things to be divided include but are not limited to family homes, vehicles, furniture, jewelry and other personal items of importance.
What information will each party have access to?
It is important to know what information divorcees can access when divorce proceedings have commenced. In divorce cases that involve a business, one party may be allowed to ask for documents, account statements, and tax returns to determine how the divorcee earned money and, in turn, split any marital assets. Divorce lawyers will advise divorcees whether they may be allowed access to any personal or divorce-related information about their ex-partner.
Financial disclosure may be imperative in a divorce proceeding. It is necessary to get a divorce lawyer to protect the divorcee from any financial harm that may come about with any divorce-related challenges that may arise, such as child support and spousal support matters.
The divorce process can be intimidating and confusing, especially for business owners, as there are additional layers to consider. Business owners who are contemplating divorce should consider talking to divorce lawyers about what divorce proceedings will legally involve. Your lawyers will be able to help manage the divorce proceedings process effectively, potentially leading to a settlement agreement that is in the best interest of both parties involved and your business.