When a marriage involves a business, separating lives becomes even more complex. The stakes are higher, and so are the emotions.
For business owners and their spouses, the future of the company can feel uncertain. Preserving your business while pursuing a fair resolution takes thoughtful planning and experienced guidance.
What happens to the business?
In a divorce, a business is treated as a marital asset if it was started during the marriage or experienced significant growth during that time. That means its value must be determined, so it can be fairly considered in the property division process. Whether one spouse keeps the business, it’s sold, or ownership is shared, the goal is to realize a resolution that reflects both its financial value and its personal importance.
The business’s structure plays a major role in how it’s divided. A family-owned LLC, for instance, may be handled differently than a corporation with outside investors or multiple partners. If both spouses are involved in daily operations, they may need to consider options like buyouts, restructuring or even co-management, each with clearly defined roles, legal safeguards and contingencies to prevent future disputes.
Courts aim for equitable, but not necessarily equal, distribution of marital assets, which can include offsetting the value of the business with other property, such as retirement accounts or real estate. Protecting the continuity of the business while achieving fairness is often the priority, especially when employees, clients or long-term contracts are involved. Confidentiality agreements, tax consequences and the transition planning are all critical components that must be addressed with care.
When you’re going through a high-asset divorce and a business is on the table, the decisions you make early on can shape your financial future. Talk to a legal professional who understands the intersection of divorce and ownership so you can make the next move with clarity.