Some groups of people are statistically more likely than others to eventually file for divorce. For example, people in certain professions may find that stress related to their employment invariably affects their marriages. High-demand careers can take a toll on someone’s closest relationships and might increase the chances of someone eventually getting divorced.
Entrepreneurs often have some of the most demanding schedules and stressful work situations while simultaneously having unreliable income. Entrepreneurs may have to work incredibly long days with very little return on that investment of time initially. They may also cease contributing financially to their marriages and may even require support from their spouses.
Is it true that entrepreneurs starting up their own businesses have a greater risk of divorce than others?
Entrepreneurs have relatively high divorce rates
Overall, domestic rates of both marriage and divorce have declined in recent decades. However, some groups continue to report relatively high rates of divorce. Some researchers estimate that between 43 and 48% of those who start their own businesses may end up divorced after doing so.
There are many reasons why entrepreneurs and small business owners have a higher overall risk of divorce than members of the general public. The time and money invested in their business is one consideration. Jealousy or a sense of abandonment on the part of their spouse is another. Business owners may file for divorce when they feel unsupported, or their spouses may file out of frustration.
If an entrepreneur does divorce, they have more to worry about than the average person ending a marriage. The business could be vulnerable during divorce. If someone invests marital income in the creation or improvement of a small business, then the company they form could be partially marital property.
They may need to report their company’s current value to the courts and factor that into the property division process. The value of a business and the support another spouse provides an entrepreneur can both potentially impact how the courts decide to handle property division and financial support matters in a divorce.
Establishing a reasonable business valuation and a workable divorce strategy can help entrepreneurs minimize any setbacks they experience because of a divorce.
