Can a business run by spouses survive a divorce?

| Oct 16, 2015 | Property Division

If your marriage is in despair because of money problems, you are certainly not alone. Money problems are a common impetus for people to split up. But what if you and your soon-to-be ex-spouse are business partners? Can the business survive?

If you are thinking about how the business may move forward even though your marriage will not, you are again not alone. Believe it or not, there are some small businesses held by former spouses that are prosperous.

These “couples” for lack of a better term, are dubbed “co-preneurs.” Their successes come from understanding their respective differences and strengths and channeling them into a common goal of making the business successful. Also, since they have a common goal of prosperity, co-preneurs are more likely to yield to their partner on certain things to make the business successful.

Further, what may be deemed a rare occurrence, may not be as uncommon as you may think. It is estimated that three million small businesses in the United States are headed by spouses.

So if you are contemplating divorce and you own a business with your soon-to-be spouse, it is prudent to document your new responsibilities and expectations, just like any other corporation that goes through leadership changes.

A skilled family law attorney can help in explaining the risks and rewards that come with such an arrangement. Also, divorcing couples must keep in mind that every situation is different, and not all couples can function in business together.

The preceding is not legal advice.

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