Would Your Business Survive a Divorce?

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Would Your Business Survive a Divorce?

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Business owners spend a lot of time preparing for things that could threaten their companies. They buy insurance, build cash reserves, create succession plans, and they worry about recessions, lawsuits, and key employees leaving. But there's one potentially devastating risk that many owners would rather not think about: What happens if the owner's marriage falls apart? This week, David Barnett explains how careful planning—including a prenuptial agreement—helped him avoid the worst-case scenarios when he got divorced. Jaci Russo offers almost the opposite perspective. She says building a business with her husband hasn't strained their marriage—in fact, it may actually have strengthened it by making the cost of walking away so high. Paul Downs, meanwhile, says the subject has barely crossed his mind, and has never come up in decades of discussing business issues with fellow entrepreneurs.

Along the way, we explore how divorce can leave a business frozen in place, unable to make important decisions or investments; whether owners should plan for the possibility just in case; and the remarkable challenge of couples who divorce but continue running a business together. Plus: Jaci reports back on what she learned at a Claude Cowork seminar.

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