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The Divorcing CEO and the Effect on a Company

July 20, 2020 by SIEGELLAW

When the chief executive of a company goes through the divorce process, the rippling effect experienced through the company can rival the instability within the household of the divorcing CEO.

Questions abound:

  1. Is the CEO focused on the business?
  2. Will the CEO’s spouse be able to break the business, or financially harm it?
  3. Is there a strong team – including an experienced divorce attorney and financial professionals – thinking as much about the business as the CEO’s divorce?

The financial strength of the business following the divorce of its CEO will likely track the divorce process itself.

A CEO embroiled in a high conflict divorce can suck the life out of its C-suite employees and cause the company, its clients, and its employees to lose faith in its future.

However, if the divorcing CEO brings in a skilled attorney who has a demonstrated track record of understanding the importance of the success of the business, that CEO’s divorce may eventually strengthen its business into the future.

When a CEO interviews a divorce attorney, look for these traits:

  1. A high level of experience and respect in the community
  2. An attorney who understands the importance of the future success of the company
  3. An attorney with a strong network of professionals who can assist in the divorce process. Such professionals may include management consultants and business valuation professionals.
  4. An attorney with the ability to work with – or against – a spouse/attorney who appear poised to make the divorce long, nasty, public, and expensive.

Divorce has an effect on the CEO and his or her family, but most importantly, the business and its standing within its field.

Skillfully guiding the CEO throughout the divorce process quickly and efficiently results in a rapid return to focus and, ultimately, a more successful business.

Will there be a financial hit on the business as a result of the divorce? It is possible. But proper planning and execution increases the likelihood of immediately strengthening the business for the future.

When a CEO – or his or her spouse – decides to divorce, there is nothing more important for the business than selecting a highly experienced attorney who can quickly and successfully guide the CEO through the divorce process.

SIEGELLAW can help. Call (410) 792-2300 or fill out the form on this page to request additional information.

Disclaimer

SIEGELLAW provides advice and representation to its clients solely under the laws of the State of Maryland.

Filed Under: Divorce and Facebook

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