Being married to a business owner isn’t necessarily easy. They often have very stressful work demands and irregular schedules. Sometimes, spouses may end up feeling as though their needs come secondary to those of the company.
In some cases, the challenges of running a business could contribute to the decline of a relationship. Other times, people married to business owners choose to divorce for completely unrelated reasons. The more complex and valuable shared marital property is, the more challenging the divorce process can become.
What types of complications can people divorcing a business-owning spouse expect to experience?
1. Disputes about business valuation
Disagreeing over what the company is actually worth is a common issue. There are actually multiple different ways to estimate the value of a business, and spouses may disagree on what valuation method to use. They may also disagree about the estimated fair market value of the company. Reaching an agreement about what the company is actually worth can be a major challenge.
2. Transitioning to new employment
It is relatively common for both spouses to work at the family business. Doing so allows them each to earn competitive wages and to share responsibility for company matters. A spouse who was not the original owner of the company or who does not provide skilled professional services likely needs to transition to outside employment during or after the divorce. Continuing to work together is often only realistic when a divorce is amicable and spouses have thorough written agreements in place.
3. Obtaining adequate support
Financial support can also be a point of contention when divorcing a business owner. The income earned by an independent professional or business owner can fluctuate based on sales or the number of projects they have in the works. Some people intentionally manipulate their financial circumstances by reducing their sales, slowing down project completion or accepting more cash-paying clients. People sometimes try to manipulate the child or spousal support calculation process by earning less than they could.
Identifying likely complications when divorcing a business owner can help people attain reasonable divorce outcomes. People anticipating complicated divorces involving high-value assets often require information about divorce proceedings and advocacy to push for the best outcome, and that’s okay.
