When your relationship breaks down and your finances are in trouble

A divorce is emotionally difficult enough. But if you are also an entrepreneur, there are additional concerns: what happens to my company? How do we divide the debts? What if I cannot pay alimony or my ex-partner is held jointly liable for business debts?

In this blog we explain what you can do as an entrepreneur debts after a divorce, what you should pay attention to and how debt assistance can help you regain control of your financial future.

Divorce & entrepreneurship: a complex combination

As an entrepreneur, your business and private finances are often closely linked. In the event of a divorce, this suddenly becomes painfully apparent:

• Who is liable for business debts?
  Especially in the case of a sole proprietorship or general partnership, you may be personally responsible for debts incurred during the marriage.
• What happens to assets or investments in the company?
  Should they be divided? And how do you value them?
• What if you incur payment arrears during or as a result of the divorce?
  Think of taxes, suppliers, mortgages or alimony.

Many entrepreneurs notice that their financial situation suddenly deteriorates after a divorce, while the outside world thinks that 'life goes on'.

Common Financial Problems After a Divorce

1. Income drops due to emotional or practical consequences
   Less focus, temporarily fewer assignments or closure of the company.
2. Liabilities increase
   Alimony, double housing costs or refinancing of existing debts.
3. Private debts are increasing
   Such as personal loans, overdrafts or credit cards to bridge the transition phase.
4. Disagreement about division of business debts
   Especially if joint investments were made during the marriage.

 

What can you do about debts after divorce?

1. Map out your complete financial situation
   Both business and private. Only then can you negotiate well and find solutions.
2. Keep communicating openly with your ex-partner about financial responsibilities
   This prevents further escalation – although in practice this is not always easy.
3. Seek legal assistance if there is joint liability
   For example, in the case of a general partnership or if you are married under community of property.
4. Seek debt assistance from a specialized organization
   Especially if you have payment arrears or have lost track.

What Zuidweg & Partners can do for you

We support entrepreneurs who have gotten into financial trouble due to a divorce. Our approach is focused on recovery, peace and perspective. What we do:

• We map out your total financial situation
• We arrange agreements with creditors, the tax authorities or your bank
• We look at whether your company is viable and how it can possibly be restarted.
• We also guide the personal process: you are not alone

Whether you need to restart, wind down or restructure: we ensure that you are not alone. And we know better than anyone how complex divorce and entrepreneurship can be together.

Reshaping your life starts with financial peace of mind

A divorce often heralds a new chapter. But it is difficult to look ahead if you are still financially stuck in the old. That is why it is crucial to also face your debts — and ask for help where necessary.

Do you recognize yourself?

Do you recognize yourself in (part of) this situation and do you no longer want to walk around with worries? We are ready to help you. Do not wait until the problems increase and take control of your financial future today. Click on the button 'Apply for debt assistance now' and take the first important step towards peace and security for you and your company.