Divorcing the spouse and the business

Divorce can be family business kryptonite, and with one in three marriages ending in this way it's not in short supply. For the business to survive the break-up, a strategy has to be put in place.

Divorce is by far the most calamitous event that can strike any family business. In Australia, every third marriage will end in divorce. And while the divorce rate has been declining, the latest figures from the Australian Institute of Family Studies show that the divorce rate after 20 years of marriage is on the rise with parents waiting for their kids to move out before they split up. By that stage, they could well have established a family business with one of them as the CEO and the other as the mover and shaker.



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