When married business partners decide to divorce, they often go their separate ways professionally. One partner might buy out the other’s share and take over running the business alone. Alternatively, the partners might jointly sell the business and divide the proceeds. In either case, they stop working together as their marriage comes to an end.
But what if you and your partner are going through an amicable divorce and believe you can still run the business together? Perhaps your partnership is a key factor in the business’s success, as your skills complement each other. You don’t want to lose that just because your romantic relationship is ending. Is it possible to keep working together?
Taking the proper steps
Continuing to run a business together after divorce is an option. Selling the business is not necessary if you agree to remain co-owners. Property division requirements can still be satisfied, as you both retain ownership of the company as you did before. Legally, there’s no obligation for you to end your professional relationship simply because your marriage has ended.
That said, it’s crucial to take the proper steps to ensure the arrangement is successful. For instance, you may not have had a formal partnership agreement before because you were married. Now that your marriage has ended, it’s wise to create official documents, such as an operating agreement or partnership agreement. These can clearly define your roles within the business and safeguard the assets you both own.
Running a business together after divorce can be complex, so it’s important to understand the legal steps required to protect your interests and cultivate a smooth working relations