Divorce and the Financial Performance of Small Family Businesses: An Exploratory Study

Craig S. Galbraith

Journal of Small Business Management, 2003, vol. 41, issue 3, 296-309

Abstract: This study formally examines the relationship between marital dissolution and the short‐term financial performance of small closely held family businesses. Fifty‐two cases of divorce where a small family business was involved were examined. Organizational and situational variables, such as the involvement of other partners in the business, whether the business was a franchise, whether formal legal proceedings were necessary, and gender differences also were examined. The results indicate that marital dissolution does impact short‐term financial performance and that several organizational and situational variables significantly influence this relationship.

Date: 2003
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DOI: 10.1111/1540-627X.00083

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