How to Protect Your Business When an Employee Gets Divorced

When one of your workers goes through a divorce, like it or not, your company can get pulled into the fray. It’s in your best interest (as well as theirs) to help streamline the process.

A man and a women in business suits fight in a tug of war battle.
(Image credit: Getty Images)

Though divorce is typically seen as a personal matter, it can also become a personnel matter. If you have an employee going through divorce, it’s not only disruptive and difficult for their private life, but may also create headaches for your business.

The employee may be experiencing stress, financial burdens and time obligations, such as court appearances. Their spouse may contact the company and ask for information that may seem questionable, intrusive or time-consuming. The potential problems are magnified when the employee is a C-suite executive, owner or someone in another high-level position with a complex compensation package — but a divorce can also be very draining on a small business, where employees tend to wear many hats and have little bandwidth for unexpected requests.

All of this may create painful distractions that weigh on an employee’s job performance, as well as the organization’s resources. On the short end, divorces can take six to 12 months to resolve, and a contentious one can take far longer. So, from a productivity perspective, an employer should be interested in reducing the amount of time the employee has to deal with their divorce. One way they can do that is by streamlining the process of obtaining needed financial documents. Doing so is a good way to support a valued employee during a troubling time, and also to protect your bottom line.

Four things a business can do to streamline an employee’s divorce:

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Holly R. Davis
Co-Founder and Partner, Kirker Davis LLP

Holly R. Davis is a legal commentator, entrepreneur, partner and nationally recognized litigator who manages over 30 associate attorneys. She founded and developed two multimillion-dollar law firms before the age of 35.  Skilled in trial advocacy, business management, family law and civil litigation, Davis also is a weekly legal commentator for Court TV and Dan Abrams' Law and Crime Trial Network.