Family businesses can be challenging when owners divorce

 Posted on August 27, 2025 in Divorce

The family business is often a source of pride for couples who put their blood, sweat, and tears into building the company. This sense of accomplishment is often the cause of some contention if the owners of the company make the decision to divorce.

There are several things that can happen if you're trying to decide what to do when you're discussing the business. Some of the options that they have include:

Fate of the business varies

Owners can decide if they want to keep the business open as-is, close it, sell or have one party buy out the other. The ability of the owners to continue to get along, despite the divorce, is often a primary factor. Whether either of them wants to continue operating the business will also play a role in this decision.

If the business will be sold, they must think carefully about how its debts will be handled. If the business will be sold or if there will be a buy-out, a valuation of the business is critical. If they will continue to operate the business together, they need a partnership agreement that clearly outlines each person's role, compensation and other critical business aspects.

Taking the time to carefully evaluate each option in the property division matter is crucial, particularly when it comes to the family business. Working with someone familiar with these matters is beneficial because they may be able to explain the options in a manner that considers all the applicable factors. Doing this as early in the divorce as possible is beneficial.