While you were married, the thought of building a business together was romantic and exciting. As the years passed and your business grew, the job became challenging but rewarding. Unfortunately, like many marriages in Colorado, your relationship did not survive, although your company is still doing well. When married business partners divorce, the dynamics of a company are likely to change. It will affect everyone involved, from you and your spouse to your associates, clients and employees. Is it possible to save your business after your marriage died?
There are many answers to this question. You and your ex may decide to run the company as you always have. One spouse could offer to buy out the other’s share in the business or, if worse comes to worst, you may both shut down the company. It all comes down to how friendly or willing to negotiate you and your ex are with each other.
Divorced business partners may face hard situations
The difficult emotions involved in a divorce can cross over to your business dealings. As one woman explained when she bought out her husband’s portion of the company some time after their divorce, working with him and coming to the final decision was like getting a divorce again, only worse when it applied to the company they had created together. As you might expect, it is not uncommon for one ex-spouse to deliberately make business decisions that annoy the other or attempt to undermine the other partner’s authority and success.
Different options can help save the business
You have a few options available as divorced people running the same business. You might consider mediating to settle your differences, which can help you compromise and negotiate terms you can both agree with. It may help to consult tax and financial professionals to advise you on your options regarding business debts, decision-making powers and bank account matters. One of you may be persuaded to sell to the other partner.
Running a business after a divorce can be more difficult than two friends running a business together, and more like co-parenting children. There are likely to be challenges and disagreements, which could necessitate legal help.