What impact does a divorce have on the manager’s assets?
- Noham Layani
- Jun 20, 2024
- 3 min read
Divorce is a reality for many couples in France, with around 45% of marriages ending in separation according to the National Institute of Statistics and Economic Studies (INSEE).
This situation, however personal, can also have significant repercussions on the management and assets of a company .
For business leaders, the issues therefore go well beyond the emotional aspects and directly affect the management of their assets and the sustainability of their company .
So what are the implications of a divorce on a business manager’s assets ? And what approaches should we adopt to best navigate these often tumultuous waters?
Understand the legal implications
Divorce results in the need to separate personal and business assets, which can become complex if the business constitutes a significant part of the marital assets.
The country's laws and the matrimonial regime under which the couple is married will play a crucial role in how property is divided.
In France, for example, unless a marriage contract specifies otherwise, the spouses are generally subject to the regime of community reduced to acquests. As a reminder, an acquest is a movable or immovable asset acquired by the spouses under the community property regime.
Which means that any business founded during the marriage could be considered as common property.
Company Rating
One of the most critical aspects in managing property issues during a divorce is business valuation. Determining the value of the business is essential to ensuring a fair division of assets .
This valuation should be performed by a qualified professional to reflect the true value of the business at the time of divorce, taking into account not only assets and income, but also debts and future prospects.
This is where Blendy, digital international accountant, can intervene, by providing its accounting expertise to accurately and fairly assess the value of your business.
Protection of business assets
It is advisable for business leaders to take preventative measures well before the prospect of divorce arises.
This may include:
Prenuptial agreements: They can determine how assets will be divided in the event of divorce and protect the interests of the business.
Business structuring: Use legal structures such as holding companies or shareholder agreements to limit the impact of a divorce on the business.
Life Insurance: Purchasing life insurance can also be a strategy to financially protect the non-ruling spouse, which can simplify divorce negotiations.
Trading Strategies
Navigating divorce as an executive often requires skillful negotiation to protect the business while being fair to the spouse .
It may be wise to consider arrangements such as paying a lump sum rather than selling shares in the business, or agreeing to a staggered payment schedule to preserve the liquidity of the business.
Blendy , thanks to its close relationship with its clients and its know-how , can support you throughout this process, providing you with personalized advice and representing your financial interests in an optimal manner.
The divorce of a business owner brings a unique set of wealth challenges that require meticulous attention and well-thought-out strategies.
Working with experts such as Blendy , who not only offer accounting expertise but also a close relationship, is crucial to effectively navigating this process.
Proper planning and preparation can help secure the financial future of the manager and its business , minimizing potential disruption and risks.
To benefit from personalized advice and expert support in managing your assets, contact Blendy . We are here to help you protect your interests and ensure the sustainability of your business.
With Blendy , digital international CPA, take advantage of digital accounting and tailor-made advice to accelerate your finance process and develop your business.
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