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Adding Fe _3 O _4 nanoparticles to composites of [Fe(Htrz) _2 (trz)](BF _4 ) spin-crossover polymer and polyaniline (PANI) drives a phase separation of both and restores the molecular structure and cooperative effects of the spin-crossover polymer without compromising the increased conductivity gained through the addition of PANI. We observe an increased on-off ratio for the DC conductivity owing to an enlarged off state resistivity and a 20 times larger AC conductivity of the on state compared with DC values. The Fe _3 O _4 nanoparticles, primarily confined to the [Fe(Htrz) _2 (trz)](BF _4 ) phase, are ferromagnetically coupled to the local moment of the spin-crossover molecule suggesting the existence of an exchange interaction between both components.