Are startup founders more likely to get divorced?

Did you know that, as a startup founder or business owner, if you're relationship ends in divorce, your spouse may be entitled to as much as 50% of your business? That might be alarming to you, especially if you've poured your heart and soul into your business, and if it's profitable

It's probably safe to say that you don't want your ex-spouse to remain in your life as a business partner. So why would you want to risk them taking half of your business? Let's take a look at the statistics around startup entrepreneurs, divorce, and the stress that running a startup can place on your relationships.

What do the statistics say?

While there's anecdotal evidence and numerous articles discussing the strains on relationships faced by start-up founders, finding specific statistics on the divorce rates or relationship success of start-up founders can be challenging.

Official statistics are hard to find, but many experts believe that the divorce rate for business owners and entrepreneurs is higher than the average rate.

Looking more broadly at relationship health, a few studies provide insight into the pressures faced by entrepreneurs and how these can impact personal relationships.

General entrepreneurial stress and relationship impact

Canadian Mental Health Association study

The Canadian Mental Health Association (CMHA), supported by BDC, Canada’s only bank exclusively devoted to entrepreneurs, released an in-depth report examining Canadian entrepreneurs’ mental health.

• 62% of business owners feel depressed at least once a week

• Nearly half (46%) say that mental health issues interfere with their ability to work

Harvard Business Review (2016)

A study highlighted the high levels of stress among entrepreneurs, noting that:

• Entrepreneurs are more likely to experience high levels of stress and anxiety compared to non-entrepreneurs.

• The intense focus on business can lead to neglect of personal relationships.

Divorce rates and entrepreneurs

Journal of Business Venturing (2010)

A study indicated that entrepreneurs have a higher likelihood of divorce compared to non-entrepreneurs, primarily due to the stress and time commitment required for running a business.

Michael Freeman's Study (2015)

Published in the journal Small Business Economics, it was revealed that entrepreneurs are more likely to suffer from mental health issues, which can strain relationships and potentially lead to higher divorce rates.

Additional surveys and reports

Inc. Magazine (2019)

An article discussed how the unique pressures of start-up life can strain marriages. Entrepreneurs often face financial instability, long work hours, and high stress, contributing to marital problems.

Forbes (2018)

A survey highlighted the personal sacrifices made by start-up founders. Many founders reported sacrificing personal relationships and family time for their businesses.

What are the pressures that can lead to relationship dysfunction?

There are a number of factors that can lead to relationship issues.

Intense time commitments

The first major challenge is the time commitment required to run a business, especially a brand-new start-up. The demands can be intense, consuming both time and energy. You may find yourself working long hours, seven days a week, and needing to address tasks immediately. This leaves little time for other activities, including spending quality time with your partner and family.

Working these long hours can result in less quality time with your partner. Often, you may miss family events and milestones, which can lead to feelings of resentment and neglect. The relentless pursuit of start-up goals can sometimes overshadow personal relationships, causing strain and conflict.

Financial strain

There's often a fabulous financial pressure especially in the early days of starting up a new business in financial uncertainty is definitely a common factor behind many stressals in relationships ongoing expenses and initial capital investments can drain personal savings inconsistent paychecks can lead to financial insecurity and disagreements over money potentially having one partner earning more than the other can also create inequity and for largest startups that require higher to investment so high risk can cause anxiety and lead to conflict

Emotional stress

And, of course, there are all the emotional ups and downs that come with running a start-up. One day you might be on Cloud 9, having secured funding or attracted great customers. The next day, it can be the exact opposite, with any number of things going wrong—losing angel investors, running out of cash, or facing unexpected expenses.

This rollercoaster can take a personal toll on your relationships. Anxiety from the business can spill over into home life. When someone is so invested in a project, their emotional energy goes into the business, leaving them emotionally exhausted by the time they get home. They often have reduced patience and are more irritable. All of this leads to start-up owners being less emotionally available to their partners.

Communication breakdown

Effective and open communication is key to any relationship. However, the demands of running a start-up can hinder this communication, leading to a breakdown. Busy schedules combined with high stress levels reduce opportunities for meaningful and deep conversations.

When you are under pressure, arguments and misunderstandings can often occur. Over time, if you don't dedicate time to effective communication, issues can be swept under the rug, remaining unresolved. These unresolved issues will eventually flare up at inconvenient times down the road.

What to do?

Ending a marriage can be an incredibly tough and emotional decision, but in some cases, it might be necessary to protect your financial wellbeing, and your start up.

It may sound tough, but choosing the right partner can often be the best decision you’ll make. Should you file for divorce? Should you stay single while you get your start up off the ground? An experienced divorce lawyer can help you protect your interests and provide strong representation.

A supportive and financially responsible partner can contribute to your overall success and security, whereas a mismatched partnership can lead to financial turmoil and stress. Additionally, should the relationship fail and things turn sour, you don't want to risk having to give away 50% of your business in a settlement. 

Key points

• Many experts believe that the divorce rate for business owners and entrepreneurs is higher than the average rate.

• Entrepreneurs are more likely to suffer from mental health issues, which can strain relationships and potentially lead to higher divorce rates. The pressures faced by entrepreneurs include intense time commitments, financial strain, emotional stress, and communication breakdown.

• The intense focus on business can lead to neglect of personal relationships, resulting in feelings of resentment and neglect.

Author: Marshall Thurlow is the Director and Founder of Orion Marketing Pty Ltd1. He is a digital marketer with expertise in SEO, website design, content marketing and project management.