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Since the beginning of Pedal time (2021), Abby and I have held firm to the belief that we should stay in our lane when it comes to advising clients. We felt the need to articulate this commitment on account of two things: (1) we already have a wide lane, and (b) everyone and their mother seemed comfortable dispensing lease advice, and that really annoyed us because the advice was usually wrong.  

So it’s in that vein that we’re sharing a series of newsletters where we get simple advice on high-stakes issues from actual subject matter experts in the many retail real estate-adjacent issues that we bump into regularly. And so without further ado…

How not to let your small business destroy your marriage 

 With Jessica Markham
Force of nature, family attorney, and Pedal Retailer

If you’re married and you start a business, what should you do to increase the chances that you stay married?


Entrepreneurship can often be really hard on a marriage. It involves a lot of trust in the new business owner and usually a lot of startup capital and a lot of uncertain income as the business establishes itself. The most important thing is to be transparent with the non-business owning spouse about how much money is going into the business and make sure that the family finances can withstand a period of reduced income.

If you get married after you start a biz, what are the most important considerations?


If you are a business owner and have created a sustainable business, you might be interested in considering a prenuptial agreement to ensure that your business remains separate property in the event of a divorce. The desire to enter into a prenuptial agreement can vary from person to person; however, if you own a business, you should at least consider it even if you dispense with the idea ultimately.

What documents should married couples have if they own a business together?


An operating agreement is a good idea if you own a business with your spouse. You also should be really clear about who is working in the business and who is managing the business and if one person is not working there as their full-time occupation, you want to be clear on the compensation that each person is receiving as well as the decision-making authority that each person will have. Often when a marriage falls apart one of the parties might begin to exclude the other one from business operations. That can make divorces even more difficult.

How do you most often see things go wrong for small business owners when they enter your realm?


I tend to only see situations where the marriage fails, so I'm not the best person to ask. However, a failing business or extremely volatile income can always have a negative impact on a marriage. If you have volatile income, you need to make sure that you are diligent about budgeting and saving, and also setting aside money for taxes. 

Once a marriage is headed for divorce, the big question is what is the value of the business and in some jurisdictions, personal goodwill is not divisible. Often, the business is the most valuable asset in the marriage and even if you employ a Certified Valuation Analyst to determine the value of the business, two professionals can come up with two different values. If you agree on the value, sometimes it is difficult to achieve a buyout due to liquidity problems.

If you had one piece of advice for a billboard campaign, what would it be?


Be honest with your spouse, and never put your business before your family's best interest.

 ❤️ 💔 ❤️‍🔥 

Hi, we're back.

Pedal Retailers know that working with us usually means talking about your personal life. Why? Because retailing is a lifestyle choice, and small business is always family business – whether you want it to be or not. 

To add our two cents: the more comfortable you are with your numbers – your money AND your data – the more you’re able to have fact-based discussions with your partner when the stressful times arise. Running a retail business is hard enough; no one wants to add guilt, shame, and resentment to the mix.

So there you go. If you’ve got any current gripes with your spouse, you can tell them you got some advice from a divorce lawyer today. You’re welcome. 😉