Divorce is never simple, but when you and your spouse are also business partners, the stakes are even higher. You’re not just ending a marriage; you’re potentially unraveling years of professional investment, financial planning, and hard work.
I have worked with many entrepreneurial couples, high-net-worth professionals, and family business owners facing this exact situation. As a medically and psychologically trained divorce attorney and mediator in New York, I’ve seen firsthand how the wrong approach can destroy a thriving business, and how the right mediation strategies can protect it.
If you and your spouse own a company together, you need more than just a divorce lawyer, you need a skilled mediator who understands business, finance, and human psychology.
When you’re divorcing and own a company together, you’re dealing with two major separations at once: the personal relationship and the professional partnership.
Some of the most common challenges I see include:
- Valuing the business accurately
- Deciding whether to sell, dissolve, or continue operating together
- Managing cash flow and payroll during divorce negotiations
- Separating personal and business debts and liabilities
- Maintaining confidentiality to protect brand reputation
- Navigating emotional tension that can disrupt day-to-day operations
In litigation, these issues can drag on for months or years, costing both parties enormous sums and often damaging the business beyond repair. My mediation method, on the other hand, offers a faster, more cost-effective, and more amicable and private solution.
My divorce mediation process is an alternative to the courtroom that allows couples to work collaboratively, with the help of a neutral mediator (me) to reach fair agreements on all issues, including the future of their business.
Here’s why my mediation model is particularly effective in business-partner divorces:
1. Protects the Company’s Value
Court proceedings are public, which means financial details can become part of the public record. Mediation keeps negotiations confidential, protecting sensitive business information and client relationships.
2. Custom Solutions Beyond the Court’s Limits
Courts are limited in the arrangements they can impose. In mediation, you can design creative solutions, such as:
- One spouse buys out the other over time
- Continued co-ownership with defined roles and responsibilities
- Profit-sharing agreements for future sales
- Licensing agreements if intellectual property is involved
3. Faster Resolution, Less Disruption
Lengthy litigation can paralyze operations. Mediation sessions can be scheduled quickly and resolved in weeks, not years.
4. Preserves Professional Relationships
If you plan to continue running the business together post-divorce, mediation helps de-escalate conflict and establish communication protocols.
5. Cost-Effective
Court battles drain both personal and business finances. Mediation is typically a fraction of the cost of litigation, leaving more resources to invest in your company or post-divorce life.
When I mediate divorces involving a jointly owned business, I guide clients through a step-by-step, psychologically informed process that addresses both emotional and financial realities.
Step 1: Gather Complete Financial Data
We start with a comprehensive review of business assets and liabilities:
- Bank statements
- Tax returns
- Contracts and leases
- Intellectual property rights
- Outstanding loans or credit lines
Having accurate, transparent information from the start builds trust and speeds negotiations.
Step 2: Business Valuation
We work with qualified business valuation experts to determine the fair market value of the company. This is critical to ensure equitable asset division and informed decision-making.
Step 3: Identify the End Goal
Couples must decide:
- Do we want to continue running the business together?
- Should one partner buy out the other?
- Is it time to sell the business and split the proceeds?
Each path has legal, tax, and operational implications that we discuss in detail.
Step 4: Negotiate Roles and Responsibilities
If the couple decides to maintain co-ownership post-divorce, we set clear boundaries:
- Who handles daily operations?
- How will profits and losses be divided?
- What happens if one partner wants to exit later?
Step 5: Draft Binding Agreements
Once terms are agreed upon, I prepare legally binding documents to protect both the business and each party’s rights.
As a psychologically trained attorney/mediator, I understand that business disputes in divorce are rarely just about money.
They often involve:
- Identity and self-worth tied to the business
- Fear of financial instability
- Resentment over unequal contributions
- Anxiety about the company’s future
By addressing these emotional undercurrents, I help couples negotiate with clarity instead of anger, which often leads to better long-term outcomes.
In New York divorce law, a business acquired or grown during the marriage is typically considered marital property, even if only one spouse’s name is on the paperwork.
This means:
- The business will be subject to equitable distribution
- Both spouses may be entitled to a share of its value
- Prenuptial or postnuptial agreements may influence the division
Mediation allows couples to work within the law while tailoring agreements that make sense for their specific business model.
Six months ago, I worked with a husband-and-wife team who owned a successful marketing agency in Manhattan. They decided to divorce but didn’t want to dismantle the company they had built over 12 years.
Through mediation, we:
- Agreed on a buyout payment to one spouse, spread over a number of years
- Created a consulting contract so the exiting spouse could still contribute expertise
- Put a non-compete clause in place to protect the business
- Kept the negotiations completely confidential, avoiding client panic
As a result, the business continued to thrive, and both parties left the marriage financially secure and emotionally intact.
I can do this for you too!
With my 35+ years of legal experience and psychological training, I can help you navigate this process with clarity, compassion, and strategy, while protecting your business, your finances, and your peace of mind.
If you and your spouse are thinking of divorce and own a company together, don’t let a courtroom battle destroy what you’ve built.
Protect your business and your future, call me today and schedule your free and confidential consultation (212) 734-1551.
I look forward to speaking with you.
Warm regards,
Lois