Thirteen years ago, Torrisi and Barbagallo co-founded Melbourne Salsa. Then they got divorced. Their start-up not only survived the personal upheaval, but thrived with the pair's renewed focus.

Living and working together took its toll on their marriage, but neither wanted to walk away from their growing business.

Their first move was agreeing on a lawyer.

Barbagallo credited the success of their uncommon arrangement to their love of dancing and a genuine mutual respect.

“We created Melbourne Salsa as we both had a passion for Latin dance and music,” he says.

“The energy and joy we bring to our classes didn't change, as we really love what we do.”

He admits there have been trying moments.

“Absolutely – and there still are. Focusing on what was best for our students and clients got us through,” he says.

“It will be seven years this year that we have been separated as life partners … we're now like brother and sister.

“Being accepted by Gabby's parents also helped. Her mother still sends me my favourite dish,” Barbagallo said.

Torrisi says “we both want what is best for the business”.

“We were able to survive because we wanted to continue to be a part of a business we both love,” she says.

“How many people can turn their passion into a business? We did and it was just too good to leave it behind.”

What lawyers say

Family law specialist Vanessa Mathews says this kind of scenario was rare.

“As family lawyers, we see the fallout of business relationships (maintained after divorce) that have turned sour. Of course our view is distorted – our clients don't come to us to tell us how well their business relationship with their former spouse is going, only to tell us how badly it is going and to ask how we can help,” she says.

She says “relations can very quickly deteriorate”.

“If the trust between them has broken down, if they are no longer able to effectively communicate, if they are engaging in disruptive or 'splitting' behaviour in the workplace (such as trying to play staff off against the other party or bad-mouthing the other party), if there are other issues (such as a dispute over the children's living arrangements or payment of maintenance and child support), then an ongoing business relationship is unlikely to succeed and may well end in disaster that exacerbates an already fragile relationship that must be maintained for the benefit of the children,” Mathews says.

“Often the decision to continue the business relationship is completely contrary to the decision to end the marriage and exposes the parties to the very real risk of having to endure yet another painful relationship breakdown – this time, the end of their business relationship.”

So why do it?

Mathews said it may be advantageous to keep the family business when it was difficult for either party to find alternative employment or the business did not have a market value (other than "value to owner" in the form of an income stream).

Mathews' advice:

•     Have clearly defined roles

•     Ensure equal access to business information, such as banking passwords

•     Have a "two of two to sign" policy so that business payments require both signatures

•     Obtain a business valuation to assess progress under the new arrangement

•     Maintain a business-like relationship

•     Communicate: address issues in a timely and open manner and have a staff member conduct meetings

•     Develop an exit strategy

Divorce lawyer and mediator Lyn Lucas said “most couples seem to want a clean break”.

“Particularly if it is a bitter separation, because all trust is lost at that point,” Lucas says.

“Mostly when couples are in business they each have their designated roles, so if one party leaves a replacement must be found for that role and an additional wage paid, creating extra costs for the party who retains the business.”

She says some couples have little choice and “the financial position of the parties may dictate that they stay in the business”.

“There may be occasions when both parties must continue to work in the business to keep it afloat, if finances are tight and the overdraft is secured on the family home and the business may not have much value.”

Lucas's advice:

•     Consult an accountant/business coach to best manage/restructure the business under the changed circumstances (eg. can some work be done at home or hours staggered)

•     Don't discuss your separation or property settlement at work – staff may fear their jobs are in jeopardy and clients who may go elsewhere if they feel the business is unstable

•     Keep your private life separate and don't pry into each other's personal activities

•     Get professional counselling to help you to cope with the stress of working with an ex-partner, your separation, finances, relatives/friends and co-parenting

•     Keep a sense of humour: if you really want to keep the business, you will need it.