Always Putting The Best
Interests Of The Client First

Joint business ownership after a divorce

On Behalf of | Jan 28, 2025 | Divorce

Couples who own a business together often work hard to grow the company and make it successful. This is often one of the highlights of their marriage, but it’s one that can become an area of contention if they split up. 

Some people opt to continue joint business ownership after the divorce. Making this successful will take some work, but the company may be able to thrive if the terms of the joint ownership are properly established. 

Clearly define all terms

All the terms of the joint ownership must be clearly defined. This should include the specific duties of each person so there’s no need to guess who is in charge of what areas. Terms for compensation, benefits and business liabilities should also be included. A partnership agreement that’s comprehensive can often minimize the chance of disputes down the road. 

Separate personal matters

Personal matters can’t infiltrate the business. At some point, each person may have a new significant other. There should be strict guidelines in place for when those individuals can become involved in the business. One time that may be hard to keep things separate is if there are social events for the company. While it may be difficult to see an ex with someone new, it’s critical to come to terms with that as early as possible in the split. 

The company’s outcome is only part of the property division process. People who are going through this situation should carefully consider how all the decisions they make during this process may affect their future. Working with someone familiar with these situations may be beneficial.