Can you and your ex continue to co-own a business?

Can you and your ex continue to co-own a business?

On Behalf of | Sep 19, 2022 | Business Owner Divorce

A family business is often seen as a symbol of success. That might not be something you’re willing to part with if you and the spouse who helped build it split up. 

While it’s not very common, it is possible to continue to run a business with your ex. The key is that you have to get all the terms spelled out in writing. This takes away the guesswork when anything happens with the company. 

What should you include in the partnership agreement?

Once you divorce, you and your ex will be in a partnership. You should treat it the same as any other partnership. At a minimum, you need to outline responsibilities and compensation terms. Think about regular pay, how profits will be handled, and what will happen with business debts. Include what’s going to happen when either party needs to take time off work. 

Have the terms for dispute resolution. It’s usually best to handle these directly with each other, but having someone else step in to mediate the matter may be beneficial. You should also include the terms for when and where disputes will be discussed. 

Another consideration is that you need to be prepared for seeing your ex carry on with their life. Eventually, this could mean seeing them with a date at a company function. Being able to compartmentalize emotions and keep them away from the business side of matters.

Making sure you have your rights protected is important in a divorce. Working with someone familiar with cases like yours may help you to ensure you have everything covered.