There has been a lot of talk on this forum and elsewhere about the potential pitfalls of starting a business venture with a spouse. While this may sometimes be true, especially when things start to go south romantically, operating a small family owned business with a spouse does not have to be all bad. In fact, sometimes it can actually be good. High asset Minnesota couples facing complex asset division might be interested in the following findings.
According to the United States Census Bureau there are approximately 3.7 married couples in the U.S who co-own small family owned businesses. While this may make a lot of sense when the marriage is strong, the arrangement can prove far more difficult when the marriage and the business go bad. In fact, in most cases when the marriage itself begins to unravel, the business relationship soon follows.
While the prevailing attitude among family law professionals has been that divorce can be a business killer, it does not have to be. The key in such situations is to prepare. In addition to financial arrangements such as partnership agreements and possibly a prenuptial agreement, it is a good idea to sit down and discuss a game plan with a spouse or soon-to-be-ex. Establishing specific roles and responsibilities going forward is vital.
It's also important to recognize that if a couple stays in business together, it is may be emotionally trying.. Given the couple's history of marriage and divorce it is a good idea for ex-spouse who stay in business together to consider some sort of counseling. While the legal and businesses details can always be worked out with good counsel often the emotional conflict is the hardest.
Source: NPR, "When Divorce Leads To A Happily Ever After For A Small Business," Yuki Noguchi, April 17, 2014
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