Can You Preserve Your Business Relationship During and After Divorce?

By Blair Trippe, Agreement Resources, LLC

When people think about the major issues couples have to deal with in divorce, they generally think about how to divide assets, who gets the marital home, and the complications of a parenting plan. But a major challenge many face is the family business. It is often impossible to imagine that a working relationship that may be the foundation of future financial stability can be maintained, managed, or even successful and profitable after a divorce. Working with a mediator to develop a collaborative working relationship, however, can make this possible.

As you begin a mediated, cooperative process, you should consider the following critical questions before making a post-divorce joint business deal.

First, is the business worth all the effort?

Second, do you have a fundamental trust in each other’s competence and commitment to the enterprise you share? Trust takes time to develop and if it’s not already there, the odds of establishing that kind of a relationship at this juncture are not good.

Third, what is the basic nature of your work together and how has it changed over the past few years? Do you need to be in daily close physical contact with your ex or can you communicate effectively by phone, text, or email most of the time? Depending on how you get along with each other, these may be important elements in deciding whether to consider continuing to work together.

Fourth, is a precipitating factor to the divorce too hard to overcome and was it business connected? In these situations – for instance, an infidelity with a co-worker in the company, or financial losses due to poor judgment calls or missed opportunities – a continued productive business relationship may not be possible.

After considering the questions above, if you want to continue your working relationship, you can work with your mediator to design a strategy that can support a successful transition.

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