Lessons from the Business World When Splitting Assets in a Divorce

Splitting assets in a divorce is like separating a business partnership. And, as with a business, what’s more important than how things are divided in the moment, is where you’re going to be with those assets in the years to come.

When a business partnership, such as a law firm or consulting practice, is divided, I make sure my clients realize:

• They are now on their own financially.
• The revenue stream that came from their partner has gone away.
• They need a plan for how their new business is going to operate.
• They may need to adjust their overhead, including who, how and what they’re paying for staff, office space and other expenditures.

This doesn’t mean that the business person, who’s now on their own, won’t be successful; but by creating a plan showing what to expect based on financial realities, their new business will be much more secure.

It’s the same with your personal finances, post-divorce. As my fellow panelist Candy Sugarman, Executive Director of Visions Anew Institute, says,

“Divorce is a business transaction, and it’s an emotional event. The divorcing individual is making some of the most difficult decisions of their lives at the most vulnerable time emotionally. I believe that anyone facing divorce must, at a minimum, consult a legal advisor, a financial advisor, and a therapist. People must become the CEO of their divorce and seek advice in the areas that are going to most affect their future.”

Click here to read more from this series on staying financially strong when dealing with divorce.

This article originally appeared in the IRC Wealth blog