What is business divorce?
Orlando Certified Public Accountant Paulette Smith talks about “divorcing” your business partner, and what happens to the finance of the business in that case.
“Business divorces typically come about when there are owners or shareholders who have decided that they want to go their separate ways. Sometimes it involves allegations of fraud, mismanagement, theft. It could involve any number of issues, but in a case like that, I would become involved to conduct whatever examination is necessary to determine whether there has been any wrongdoing and, if so, the extent of it. Then, [I would] hopefully work with the people involved either directly or through an attorney to resolve the issues and get the people involved to a point that they can settle up if necessary and walk away.”