Is Running a Business with Your Ex a Good Idea After Divorce?

December 19, 2012

According to data from the U.S. Census Bureau, more than 3.7 million businesses in the United States are jointly owned by a married husband and wife. Considering how common divorce is, a significant number of these couples will likely end up facing a serious dilemma: should they continue to run their business together even though their marriage is breaking up?

If you're considering going into business with your spouse, it is a good idea to meet with an attorney to create a contingency plan in case you end up divorcing at some point. While most people are aware that they can seek a prenuptial agreement prior to getting married, many New York residents do not realize that state law also allows for postnuptial agreements, which are similar to prenups but executed after the marriage. A postnuptial agreement can help take some of the confusion out of divorce by specifying what should happen with the business if the couple breaks up.

Tips for running a business after divorce

Couples who do decide to continue to work together should know that it won't be easy. Even if the couple has stayed on relatively good terms, the stress of a divorce can boil over into significant problems at work.

A business guide recently published in the New York Times offered some tips for couples who are thinking about continuing to work together after divorce. If you are in this situation, consider the following tips:
- Focus on respect: If you can't get over your anger towards each other, the business will suffer. Set boundaries about how you will act at work, and try to find a way to empathize with your former spouse. If your marriage is breaking up because of a major breach of trust -- like infidelity or financial misdeeds -- continuing to work together may not be the best option.

- Talk to a professional: Working with a New York divorce lawyer is important, but you may want to consider talking to a professional therapist as well. A therapist can help you process the anger and trauma of divorce so that you can focus on running your company. Seeing a therapist together can also help you and your spouse work on improving your communication skills.

- Make a plan: You can't just continue on like you did before the divorce and hope everything will work out. Sit down with your spouse and decide how you will manage the business. In addition, it is a good idea to create a contingency plan in case one of you decides to leave.

- Inform your staff: You don't want rumors floating around, and you don't want your employees to be confused or scared. Work with your spouse to develop a plan about what to say to your staff -- you should be the first to tell them about your divorce and about your plans for the business moving forward.

If you have any questions, be sure to talk them over with your divorce attorney. It is always better to get professional advice than to risk running into a serious problem down the road.

Article provided by O'Brien & Associates
Visit us at www.obrienassociateslaw.com