Do entrepreneurs and business owners divorce more frequently?

Running a business can be far more involved than an “ordinary” full-time job. It can mean covering multiple positions, often without the salary that even one of those positions would command. The idea is that someone who develops their own business will have the freedom of being their own boss and can eventually profit substantially from their investment of time and energy in the company’s development.

However, entrepreneurs often live hand-to-mouth for several years while developing their businesses and may not have much time or energy to commit to the people who love them after a long day at work. There are plenty of people who claim that entrepreneurs and small business owners have a higher divorce rate than the average adult. Is that actually true?

Yes, business owners seem to have a higher risk of divorce

Overall, divorce rates in the United States have stabilized at around 37%. However, some groups have higher divorce rates than the average population. Entrepreneurs and small business owners are among those groups that typically have higher divorce rates, with many studies showing the rate at around 50%.

Recognizing that there might be an elevated risk of family challenges ahead doesn’t necessarily need to deter someone from pursuing their entrepreneurial ambition. Still, it could influence how they develop their business. Individuals who understand the risk of divorce and starting a business can potentially take steps to protect themselves, their new company and their families from the risk involved.

There are multiple options for concerned entrepreneurs

Those who want to start a business worry about the effect it may have on their family or losing the company if they divorce can act to protect themselves before something goes wrong. They can commit to very specific standards regarding how much time and money they will invest in the business so that they don’t put undue strain on their marriage. They can even potentially clarify what kind of ownership interest their spouse may have based on their unpaid contributions or household support during the startup stages.

Those who identify the factors that may complicate their entrepreneurial aspirations or their upcoming divorces may have an easier time protecting themselves with the assistance of a legal professional. Addressing the division assets will often be one of the most pressing challenges in a high-asset divorce situation and being prepared is key.