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Ending one partnership, beginning another

Divorce for business owners is often complex. Ironically, it can sometimes be simpler if the business started during the marriage.

Sometimes people who do not get along as spouses are still good partners. They work together very well in a professional setting. It is possible, although relatively rare, for couples to own and run businesses after a divorce.

Business division basics

As explained on FindLaw, business division during divorce is a multistage process. In many cases, one spouse owns and operates the business while the other has a separate career or maintains the household.

In these cases, there probably is not much opportunity for mutual ownership and leadership after divorce. Instead, the parties might negotiate a property division agreement that allows one side to take the business and the other side to take other assets of comparable value.

Transitions during divorce

The American Bar Association also brings up these points, along with more detail about how to buy out a spouse’s position or liquidate business assets. It also mentions that owning and running a business together after divorce is not very common.

The article mentions that it is sometimes difficult for spouses to maintain a civil, cordial relationship in a professional setting after divorce. However, there is often a simpler reason why spouses do not work together after their marriages are over: They were not doing so during their marriage, either.

Different options for businesses

The ABA article brings up some very good points and some popular, practical courses of action. However, it is important to take this type of general information for what it is. There are other ways to maintain the status quo in a business during divorce. There are different ways to deal with different types of businesses. Essentially, any guidance would have to come directly from the details of the organization and the partnership — there is usually a way to make everything work out.