Divorce in the Boardroom

It’s no surpise that a divorce can have an enormous impact on a small business owned by one or both of the spouses. But, under the right circumstances, a divorce of a key corporate player has the potential to exert an enormous impact even on a publicly-owned corporation.

Consider the pending divorce of Stephen Pomeroy, the recently designated CEO of Pomeroy IT Solutions, a company currently listed on the NASDAQ stock exchange. According to a Cincinnati Post article, Jennifer Pomeroy, his wife, recently filed at least three related lawsuits in addition to her divorce action.

At least one of her lawsuits reportedly strikes at the very heart of corporate operations, alleging serious misconduct by key personnel. And the company reportedly may face being dropped from NASDAQ.

At least one other of her lawsuits reportedly raises very serious questions about her husband’s alleged propensity for violence.

One of the interesting sidenotes of the article is that the Pomeroys reportedly made a prenuptial agreement.

Most people think of prenups as ways to control property that they acquire either before or during the marriage in the event of death or divorce. Or to avoid or limit alimony in the event of divorce.

But there’s another important, although less obvious, reason for prenups that is implicit: the hope of avoiding wide-ranging litigation that may affect a spouse’s reputation and business, whether directly or indirectly.

Sometimes, the best-laid plans go awry …