Moolala: Divorce & Business Ownership - Featuring Laura Paris, Shulman & Partners

In a Moolala Podcast appearance, Laura Paris, Associate Lawyer at Shulman & Partners LLP, discussed one of the most challenging aspects of separation and divorce — when spouses jointly own a business. She outlined the practical and emotional issues that can arise when a couple must determine how to divide or manage a shared enterprise. Laura explained that deciding whether to sell, buy out, or continue operating the business together requires careful planning, open communication, and often professional valuation. She also noted that beyond the financial implications, the emotional connection many people have to their businesses can complicate the process. Her insights offered a balanced perspective on how separating couples can navigate both the legal and personal realities of business ownership during divorce.

“When it comes to a separation, you can look at the running of a business from the same angle that you look at taking care of children. If you need to co-parent, the same skills that you put in place to ensure that you’re doing that effectively and putting the children’s interests first, you apply the same concepts but to the business.”
— Laura Paris, Associate Lawyer at Shulman & Partners LLP

Laura explains that separating couples who co-own a business face unique challenges that extend beyond typical property division. The first question, she said, is always: what is the plan for the business? Some couples choose to sell and divide the proceeds, while others attempt to buy one another out or continue operating together.

If a sale is planned, valuation is straightforward since the sale price establishes the asset’s value. However, buyouts can be far more complex. Laura noted that lawyers often rely on professional business valuators to assess fair market value, but even with expert input, disagreements can arise. Different valuation methods and selective financial disclosure can lead to disputes over what the business is truly worth. Once a value is established, tax considerations and corporate structure must also be addressed, often requiring input from corporate and tax professionals.

When former spouses decide to continue running the business together, success depends largely on their ability to separate personal emotions from professional responsibilities. Laura compared this process to co-parenting, explaining that maintaining a functioning business requires similar skills — communication, trust, and the ability to focus on shared goals despite personal differences.

Laura also discussed situations where one spouse has only a partial or informal role in the business, such as being listed for tax purposes. In these cases, ownership may not reflect actual involvement, which can complicate negotiations. If agreement cannot be reached, dissolving and restructuring the business may be necessary.

She emphasized the value of proactive planning for couples entering relationships where business ownership is a factor. Establishing expectations in advance, ideally through a cohabitation agreement or marriage contract, can save significant emotional and financial stress later. By outlining whether one partner will buy the other out, whether the business will be sold, or how it will be managed, couples can ensure decisions are made with clear minds rather than during conflict.

Finally, Laura addressed the emotional connection that many people have to their businesses. For some, she noted, a business carries not just financial value but also deep sentimental meaning — especially in cases involving family-owned enterprises or community establishments. Recognizing this emotional attachment is essential to approaching negotiations with empathy and realism.

Listen to the full Moolala Podcast interview here.

This media appearance is part of Shulman & Partners LLP’s ongoing contributions to Canadian family law discussions. Explore more of our media features in our In the Media archive.