Can You Run a Family Business With Your Ex Post-Divorce?

On Behalf of | Jul 31, 2024 | Family Law

Building a business together with your spouse, perhaps for the purpose of leaving behind a legacy for the next generation, is a power move. However, troubles may arise if your marriage ends in divorce. While your mutual interest in leaving a legacy may remain unchanged, can you reasonably expect to co-own the business with your ex?

Without a doubt, divorce alone is a life-changing event, and it’s certainly not easy to continue co-operating a company while the fabric of your personal life unravels. However, that doesn’t mean that maintaining the status quo – at least in regard to the family business – is impossible.

Communication and civility are crucial

If you and your ex continue to share a vision for and an interest in running the company together, the first challenge is often coming to terms with the noticeable shift from what was once a personal relationship to a strictly professional one. While a professional relationship may make setting boundaries easier, the erasure of the familiarity you shared as a couple may make open communication challenging.

Furthermore, the emotional turmoil that often accompanies divorce can cause former spouses to weaponize their personal issues when engaging in the business environment. This can create significant conflict, making it harder to operate the business.

Divorced co-owners may find greater success if they make a conscious effort toward open communication regarding their business goals. This crucial conversation can be a helpful reminder of why you started the business in the first place. With your shared objective, you can preserve a meaningful legacy for the next generation in spite of your differences.

Weighing the pros and cons

Continuing to co-operate family business can be a surefire way to keep each other accountable and to help ensure the company is a worthy legacy for future generations. Besides that, your wealth of knowledge and experience with the company can help maintain a familiar leadership structure and make succession seamless.

However, it’s crucial to acknowledge that working with an ex can be emotionally draining and lead to disagreements. As such, you might want to consider creating a buy-sell agreement outlining the process for either spouse to exit the business, in case it makes sense to do so at some point in the future.

Deciding whether to continue running a family business together after divorce is a crucial process that may necessitate legal guidance. Appropriate legal support can help you acknowledge the potential difficulties that your unique circumstances present. This way, you can make an informed decision that preserves your business interests without compromising your personal well-being.

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