Doing business with your Ex
Entrepreneurs who dissolve marriage don’t always dissolve partnership
By Dianne Buckner, CBC News
Posted: Feb 17, 2012 8:50 AM ET
Last Updated: Feb 17, 2012 11:17 AM ET
It's hard to imagine what it would be like going to work every day and having to see your ex husband or ex wife. But it's not uncommon to find entrepreneurs who do just that. That's because plenty married couples also hook up to create companies. After all, who can you trust more than the person who shares your financial future? And maybe your children? Your goals are aligned in a way that unrelated partners just can’t experience. In my work with both Dragons' Den and Venture, I've met countless pairs who felt their best partner in business was their partner in life.
But with the divorce rate running close to 50 per cent in Canada, it’s not surprising that the additional stress of running a business together can contribute to the decision to end the marriage. Suddenly those joined-at-the-hip duos discover that both their personal and professional lives will be blown to smithereens, if they find their marriage isn’t going to last. So what happens?
Here are three examples.
Renee and Arnold Unger — Renee's Gourmet
Renee and Arnold Unger founded Renee’s Gourmet in 1985, turning her love of cooking into a dressing and dip empire, with best-selling products like Mighty Caesar salad dressing. But along the way, she and Arnold’s marriage collapsed. Renee is remarkably honest about how bad their break-up was.
Entrepreneur Renee Unger turning her love of cooking into a dressing and dip empire, but along the way her marriage collapsed. (Renee's Gourmet)“I wanted to see him under a Mack truck,” she says.
But the pair had so much at stake in their company, she says they were “forced” to work through it. For a while, it wasn’t pretty.
“We were throwing off terrible insults at one another,” she says. “And that continued when we were at work for the first year after our separation. But then gradually I figured out that all it was doing was hurting both of us, and hurting the business, and I decided to conduct myself in a more professional manner. It’s a strange thing to say considering my age at the time, but I’d say I grew up.”
Both became more mature, it seems, since Renee and Arnold were able to invent a new collaborative relationship, and preside successfully over the growth of Renee’s Gourmet. At one point they hired a CFO as a go-between, but Renee says she doesn’t recommend it. “Just be civilized,” she says.
Although they sold the company to Heinz in 2006, the two still speak on the phone three or four times a week. “I would say that we’re very close and it’s a very healthy relationship,” says Renee. “If we hadn’t been in business together and had to work it out, that wouldn’t be so.”
Laurie and Mike McCurlie
Hamilton, Ontario’s Laurie and Mike McCurlie also decided their business partnership could survive divorce. The couple started MJM Productions in 1981, an audio and video production house in Hamilton.
“There were a few really difficult years,” says Laurie, “not only for us, but for our staff. We were emotionally frazzled. So the vibe was a little tense.”
The pair’s partnership began in the 1970s when they were both musicians in a rock band. They were on the road together, playing six nights a week. When that wrapped up, both went to university, and Mike got a job managing the sound recording studio of musician Daniel Lanois, producer of big names like U2 and Bob Dylan.
"When Lanois hit the big time, he and his brother sold the studio," says Laurie. “We considered buying it but decided not to.”
Instead they opened their own production house — and had two daughters. The business thrived, but the challenges of working and living together took a toll. By the time the girls were heading to university, the combination had become too much.
MJM Productions co-founder Laurie McCurlie found the stress of working and living with her business partner and husband took its toll on both. (MJM Productions)“Some of the resentments you might feel with a business partner that you might have been able to blow off and go have a relaxing evening — instead you go home and make dinner for him,” she says. “I think if we hadn’t worked together we’d still be married.”
So does she regret going into business with her husband?
“I’ve had moments where I thought that, yeah,” Laurie admits. “We had a really strong partnership.”
Nowadays both has a new romantic partner, and feel good about their business relationship. One of their daughters has just joined the company.
“I don’t have any regrets about what happened,” says Laurie. “I’m just glad that we were able to go through a breakup and keep the business, because it’s been good to us. It’s given us income, and we have a great team of people, great clients. I feel grateful for all we have.”
Sharon and Dave Dubois
Believe it or not, I also spoke to a couple that divorced and then decided to go into business. Sharon and Dave Dubois were married for 17 years, had two children, and split up in 2004.
Three years ago, Sharon opened IronKore Performance Training, a Toronto fitness facility that trains high performance athletes, as well as regular folks who just want to tone up and feel stronger. Initially Dave was just going to invest and support the venture financially, but as it developed, his background in recreation sparked his interest to get more involved.
“I asked Sharon if she would be interested in having me come in as somebody with contacts, and who would deal with the all the maintenance and operational issues of the gym,” explains Dave.
Sharon didn’t hesitate to say yes.
“I thought it made sense. I’ve got somebody who’s committed to my success and the business’s success,” she explains. “We both have a vested interest in making it work. He knows anything that messes with me and the business would mess with his children, and he wouldn’t do that.”
'We've been there, we've done that, and we know we can work through it'—Sharon Dubois
Sharon also knows, as all partners do, that conflicts typically emerge in any business arrangement. And she knew their history would help at those more challenging times.
“When things get ugly, I already know what to expect,” she says. “We’ve been there, we’ve done that, and we know we can work through it.”
“I think because we know each other, we work through those issues much better than people who don’t know each other as well,” says Dave.
Everything they say makes it clear these ex-spouses trust each other. And from what I’ve heard from all the partners I’ve spoken to lately (preparing this and last week’s column), trust is one of the most key elements in any successful partnership.
All you have to do is earn it.
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