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How to continue business ownership after a divorce

On Behalf of | Dec 8, 2021 | Divorce

When individuals start a business with their spouses, there is a good chance they did not think divorce would be in their future. However, if a couple is now facing the dissolution of marriage, they need to decide what to do with the business.

The cleanest way is to sell the company to a third party and divide the profit, leaving both spouses free and clear of business ownership. However, this is not the only option, and the couple may both want to involve themselves in the company. If this is the case, there are things to keep in mind so co-ownership goes smoothly.

Options for ownership

Besides selling the business to someone else, the Market Business News discusses the other two options: One partner buys the other one’s share of the company or the partners continue to work together and co-own the business.

If one soon-to-be-ex-spouse cannot afford to pay the other one, or if both want to stay in the business, co-owning may work if both partners approach the situation right. Both must want the business to succeed and agree to be honest and fair throughout the working relationship.

How to have a healthy business relationship

Good communication is key if both partners are going to work together. Even if meeting one-on-one is challenging, regular communications should occur, ideally via email. If working together is hard, the partners may choose to alternate schedules, so they are never in the business at the same time. Some ex-spouses choose to have one silent partner and one that is in charge of daily operations.

Emotions can play a big role in how ex-spouses interact while running a company. Psychology Today discusses that taking ownership in the ending of the marriage is important for each partner to do. This helps each person move forward, and it often eases tension and blame that can complicate owning a business together.