Divorce is a tough journey, especially when you share not only personal ties but also a business with your ex-partner. You might wonder, “Can we keep running this business together?” The short answer: it’s possible, but it’s not always easy. This guide will help you understand the pros and cons, explore strategies for making it work, and provide resources to help you along the way.
The Challenges of Running a Business with Your Ex
- Emotional Baggage: Divorce can leave behind hurt feelings, resentment, or distrust. These emotions might spill into the workplace, making collaboration difficult.
- Communication Breakdown: If communication was an issue during your marriage, it might remain a problem when working together.
- Decision-Making Conflicts: Running a business requires frequent, often high-stakes decisions. Disagreements might become more common post-divorce.
The Benefits of Continuing a Shared Business
- Financial Stability: Selling the business might not yield enough money to support both partners. Keeping it running allows you both to earn an income.
- Preserving Legacy: If the business has sentimental value or a long-standing reputation, you might prefer to keep it alive.
- Business Success: If both of you bring unique skills to the business, staying together professionally could lead to continued growth.
Tips to Make It Work
- Create Clear Boundaries: Separate personal issues from business matters. Consider therapy or counseling to address lingering emotional challenges.
- Define Roles and Responsibilities: Clearly outline each partner’s duties to avoid overlaps or misunderstandings.
- Put Agreements in Writing: Draft a legally binding partnership agreement that includes:
- Roles and decision-making authority.
- A conflict resolution process.
- A contingency plan if one partner wants to leave.
- Focus on Communication: Hold regular meetings to discuss the business. Use tools like Trello or Asana to keep tasks organized.
- Hire a Mediator or Consultant: A neutral third party can help navigate disagreements and offer impartial advice.
- Evaluate Regularly: Periodically assess whether the arrangement is working for both parties. If it becomes too challenging, consider other options.
Alternatives to Co-Running a Business
- Buyout: One partner buys the other’s share of the business.
- Sell the Business: Both partners agree to sell the business and divide the proceeds.
- Hire a Manager: Step back from daily operations and hire a professional to run the business.
Helpful Resources to Get Started
Websites and Guides
- Nolo – Guides on legal aspects of divorce and business ownership.
- FindLaw – Articles about co-owning a business post-divorce.
Podcasts
- “Divorce at Altitude” – Offers insights into legal and financial challenges during divorce.
- “The Business Divorce Podcast” – Focuses on navigating business partnerships during personal splits.
Books
- “The Business of Family: How to Stay Rich for Generations” by Linda Davis Taylor
- “Splitting Heirs: Giving Your Family’s Wealth to the Ones You Love” by Ron Blue
Magazines
- Entrepreneur – Articles on business ownership and partnerships.
- Forbes – Regular features on co-founders and partnerships.
Affiliate Services and Tools
- LegalZoom (Sign Up) – Affordable legal advice for creating partnership agreements.
- QuickBooks (Try QuickBooks) – Simplify finances with accounting software.
- Zoom Mediation Services (Book a Consultation) – Online mediation for conflict resolution.
