Let’s face it. Nearly half of married couples in America end up in divorce. That may surprise you but it’s true. Worse, second marriages have a higher divorce rate. Now, that sure can give you goosebumps if you’re just about to get married. But we’re talking about your regular folks here. If you are about to open a business or are running one, you may be in for a bigger surprise. The entrepreneur divorce rate is 5 to 10 higher than usual.
As driven as an entrepreneur is, there indeed is a bigger chance family life is going to be thrown in the background. If you’re running a company, your time would highly likely be eaten by all the work to be done. Plus, there’s the case for the money. Business people are high-risk individuals. The quality of your marriage could suffer when you put everything on the line for the business.
Luckily, having a business is not tantamount to destroying your marriage. In fact, there are businessmen who have been successful in both fields. Bill Gates and Warren Buffett, two of the richest men on the planet, are both happily married. Being strategic can help you a lot not only in keeping things together. What’s more, it also helps in protecting your business should a divorce becomes imminent.
Protect Your Business
The most obvious way for you to protect your business from an ugly divorce is to sign a prenup before you get married. That said, if your business has been existing even before you tied the knot, indicates that it’s a separate property solely owned by you. Complications are bound to ensue if things are not laid out specifically, especially if your ex-wife used to work in your company.
Another key strategy you can use to protect your business is a postnup. It may not be as popular as a prenup. But a postnup can be very effective in safeguarding your business interest. By doing so, you dictate how your interests in business should be handled in cases when the marriage dissolves. Also, a postnup benefits your children as delineates how your kids are to be supported should a divorce push through.
Additionally, you can place your business in trust. It’s a smart move that keeps your business from being classified as a marital asset. Simply that’s because you don’t personally own it.
Also, a buy-sell agreement would be spot on. It is instrumental in defining what happens to your business should any of its owners change status. It can thwart any attempt from a spouse to acquire ownership, for instance.
Lastly, why not take an insurance policy designed to offset the possible loss of a divorce? Taking whole-life insurance that would grow in cash value means you can liquidate it when you need to buy out your spouse’s business share.
Strengthen Family Ties
Indeed, making sure your business is secure should your marriage be on the rocks is wise. But above and beyond that, building your marriage from within and spending ample time with your family is by far, the best way to prevent such sad break-ups.
Know that the complications that come with a divorce can have a negative effect on the quality of your life, your business including. Top of that list is the division of properties. The legal status of everything you own as a married couple changes once a divorce is finalized. And divvying up can be a very contentious process that can cause you emotional distress, not to mention rid you of your hard-earned money.
Another battleground between divorcees is child support. We’re talking about your financial responsibility to your children. The court will determine how much should each parent, the custodial and non-custodial, bring on the table for your kids. And once again, this can cause you heartaches. In this regard, hiring a competent child support lawyer should be wise.
Take note that even couples who don’t have kids end up bitter after separating. That of Johnny Depp and Amber Heard is a classic example.
It’s all about balance. It’s true. You are walking on a tightrope when you pursue business. But it’s not an impossible situation. Unlike an ordinary worker, an entrepreneur should have a greater command of his schedule, assuming he manages things right.
As mentioned entrepreneurs are high-risk individuals. It’s best therefore that you set limits to how far you should go when it comes to risks. Most, if not all, business start-ups require a lot of financial backing and attention. You’d have to factor in time with the family and consider such appointments as non-negotiable. Otherwise, things could fall apart slowly without you noticing it.
It’s a matter of priorities. But when you are able to create a certain balance, your family life and work-life will complement each other. And you’d reap the handsome rewards thereafter.