Featured News 2013 When Business Owners Pursue a Divorce

When Business Owners Pursue a Divorce

Once upon a time, they met in law school. Then the two joined the same law firm and fell in love. Their marriage was not fated to last, however, even though their practice still flourished. After a long discussion, the two decided that they were going to try to stay in business together in spite of the impending divorce. Their decision is not that uncommon.

According the U.S. Census Bureau, roughly 3.7 million business were owned by a married couple back in 2007. What that means with today's divorce rate is that many business owners have to consider whether the end of their romantic relationship spells the end of their business partnership. For some, it does entail a complete separating of ways, with the business being kept by one spouse and the other getting additional assets or finances in exchange, making for a very complicated process.

For others, divorce is even more complicated than this, because they want to both keep the business. Some ex-spouses have been able to make running a business together work out. The New York Times even ran an article on these divorcees. From these experiences then, business owners who are considering divorce can learn what it would take to stay together in business after a divorce.

For one couple, a divorce meant they had to assess whether they would keep the business that they had started up while they were married. With four children to think of, and no other employment, the wife realized that she needed to stay at that job. The couple found out that this was a feasible option because the two were still able to respect one another, a vital component for a successful business relationship. Eventually, she began her own business, which turned into a multi-million dollar operation. Her former husband ended up working at that company too, and they are still succeeding at being coworkers.

Respect was the necessary ingredient for another couple, who were both partners in a consulting firm. They found that they could stay in business with one another because they were still able to keep up communication, and each found the other dependable. Especially for a work relationship, they found that they had to follow through on their agreements and promises. They even learned the ability to empathize with one another. Other couples learned that counseling is not only for the married. For example, healthy communication is necessary if ex-spouses want to be business partners. Two accountants who got a separation found that therapy helped them to work through their anger. They could then continue business as usual.

Divorcees also ran into paperwork issues. When married couples start up a business, they may not feel the need to write up a shareholders agreement. If that couple wants a divorce, however, this is the sort of documentation that may become necessary. For one thing, this can outline how the business would be divided if either partner chooses to part ways in the business. The agreement can also provide job security. With this reassurance, ex-spouses may be able to maintain a healthy business relationship.

The divorcees may not be the only ones who fear for their jobs. Employees may go through anxiety once they catch wind of the divorce. That is why some divorced business owners recommend that employees learn about the split from the couple themselves, and the owners can reassure workers that the business will remain intact as will everyone's jobs.

Another commonality in some of these success stories was that the first two years were rough. It took sticking it out to that point before the road got smoother. This cannot work for every divorcee though. Some relationships become too hostile, and trust may be broken. Whether you have legal issues to take care of before jointly owning a company as divorcees, or whether you are business owners who need to totally part ways, a skilled divorce attorney may be able to handle all your concerns and to help you succeed in the next steps of life.

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