When business relationships break down, a business asset divorce agreement may be required. Running a business can be challenging at the best of times. Given that a majority of businesses are currently experiencing something closer to the worst, it is understandable that we have seen an increase in enquiries about rights and options with respect to leaving a business relationship – commonly referred to as a business asset divorce. It can be confusing trying to work out what the best course of action is when it comes to business asset divorce.
Business Asset Divorce Self – Assessment Checklist
Before you make any decisions, we encourage you to take a moment to think about the nature of your relationship with your business partner(s) and ask yourself a few simple questions about life before COVID-19:
- What was the relationship really like?
- Did you show each other respect?
- Were you on the same page about the future of the business?
- Did you have a decision making process in place that worked for you?
- How was the overall communication between you?
- Did you have your own roles within the business that you were happy with?
- Were you already arguing and at odds about the management of the business?
- Did you feel like you were being pushed out or oppressed?
- Did you feel as though you were carrying the business alone?
- Were you concerned about the financials of the business?
Once you have turned your mind to the above answers, think about whether the current pandemic is a test you can pass with planning, perseverance and open communication or, whether despite all your efforts, it is an exacerbation of a pre-existing condition which has now manifested. If it appears to be the latter, you cannot delay taking action. The longer you leave things unresolved, the harder it will be to save the relationship and the business. Undue delay will undoubtedly harm both. At this point it is necessary to consider how exactly the assets in a business will be divided and how the relationship will be terminated. Be sure to educate yourself on the government requirements for ending a business.
If it’s not working, it’s not working. In business, just like in life, partners grow apart. In order to forge a new path for yourself you need to look ahead and not be afraid of your own vision for the future. If you are being held back by memories of loyalty, you need to decide whether there is still a chance of reconciliation or whether you should now begin the process of conscious uncoupling now. It is important not to punish yourself or let nostalgia blind you.
We can help you plan that first difficult conversation and be with you every step of the way to make sure your interests are protected during a business asset divorce. At Melbourne Law Studio, we want to help you find your bearings and your voice.
If you would like to speak to someone about the issues you are facing you can send us an email to info@melbournelawstudio.com.au or book a confidential and obligation free consultation via our website www.melbournelawstudio.com.au.
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