What happens if I sell to family and then we have a falling out during the transition period?

What happens depends heavily on what the purchase agreement actually says about the transition. Many business sales include transition or consulting arrangements where the seller stays involved for a period afterward, and if that arrangement isn't documented clearly, a family falling-out during that time can turn into a real dispute over what each side is still entitled to or obligated to do.

If you're still owed money under a vendor take-back or a holdback, a falling-out doesn't erase that debt, but enforcing it against a family member you're now estranged from can be far more difficult in practice than enforcing it against a stranger. This is one of the strongest reasons to put real thought into the transition terms, payment security, and what happens if the relationship sours, before the sale closes rather than after. A well-drafted agreement anticipates that family relationships can change, even when nobody expects it at the time of the sale.