“I often have clients that have challenges when it comes time to pay a monthly amount when their cash flow doesn’t always support that,” Kerns said. “It can also put a ton of pressure on a small-business owner, particularly when their business is subject to ebbs and flows.”

According to Kerns, one of the reasons cash flow becomes a challenge is that a business often gets valued during divorce proceedings, and the value of the business may contain noncash assets such as customer lists or a company’s reputation.

“If, for example, your business is valued at $1 million, it’s not all cash, and you have half of that to pay your spouse,” Kerns said. “So you may have to finance that amount ... then you’re paying a loan back in addition to trying to run your business after a divorce. It can be very, very difficult strain.”

Think ahead when you can

No one goes into a marriage with the expectation that it will end in divorce. But regardless of the state of your marriage, it’s important to take steps in advance to protect your company’s assets — and even your business partners’ interests.

One of these steps is to have a buy-sell agreement with your partners. This is a legally binding document that stipulates in writing what happens when one partner dies, wants to be bought out, or experiences other significant events that may impact a business.

Doing this in advance creates a defined road map and significantly reduces any confusion when a situation — like divorce — arises. Most buy-sell agreements require that a business has insurance to cover the costs of these types of events.

“I find that divorces when there are [business] partners can be even worse because the partners are trying to go into the office every day and earn money, and they’re not too thrilled about dealing with lawyers and having the staff gathering information to turn over to attorneys,” Kerns said. “It’s a huge, huge distraction and could even personally impact their cash flow.”

Find the right attorney

The right attorney can ease what is for most people a very difficult — and emotional — experience.

Zurzola advises finding an attorney that has had a history dealing with divorcing couples when either both or one has a stake in a small business. He also recommends attorneys that have good networks of advisers, such as forensic accountants, tax specialists, valuation firms, and insurance professionals. Kerns agrees.

“The choice of a divorce attorney can be a very personal one because you’re putting a lot of trust in that person,” she said. “And remember that the more you hide or act like something’s not important, the harder you’re going to make their job.”

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