Shared professional practices established by couples in the same profession are somewhat common. Spouses who meet during graduate school might operate a physical therapy office together. Accountants who fall in love in college or while working for an outside firm may decide to start their own business that they run together.
A joint professional practice can provide income for a family. Unfortunately, it can also become a point of contention if spouses eventually divorce. Is it possible for divorcing couples to continue running a professional practice together after the end of a marriage?
Dividing the practice is often necessary
The type of business, the reason for the divorce and the dynamic between the spouses can all influence how realistic it is to maintain joint ownership after a divorce. Most people have very strong negative feelings toward their spouses during and after divorce. Continuing to work together may not be a realistic goal, as their conflict can impact company operations.
However, in cases where people keep matters amicable, it is sometimes possible to maintain joint ownership of a business or professional practice after a divorce. In such cases, the spouses generally need to have very clear agreements in place regarding their continued joint ownership. They may need to renegotiate contracts with one another to address the possibility of a future buyout and other complications that could arise.
Frequently, the simplest solution is to include the business in the property division process. One spouse can retain control of the professional practice, while the other moves on to different opportunities. Other times, spouses may agree to dissolve the joint practice so that each of them can move on and start a new organization after the divorce.
Business owners and those running professional practices often face very challenging property division negotiations when they divorce. Reviewing various details of a related scenario, including the strength of the brand and the dynamic between the spouses, with a skilled legal team could help people navigate very complex financial matters at the end of a marriage.
