Whether you own the business, your spouse does, or you own it together, we help you understand what portion may be marital, what it is worth, and the practical options for dividing that value.
Key questions in a business case
- Is it marital? A business started during the marriage is generally marital. A business started before the marriage may be non-marital, although an increase in its value during the marriage can raise questions.
- What is it worth? Valuation experts commonly consider the company's income, its assets, and comparable sales. Goodwill that depends on the owner personally may be treated differently from goodwill that belongs to the business itself.
- What income does it really produce? Business income also matters for child support and alimony, and owners' compensation and expenses can require careful review.
Practical ways to divide the value
In most cases the business stays with the spouse who runs it, and the other spouse receives other assets or a monetary award to balance the division. Payment terms can be structured so the business can continue operating.
Common questions about businesses in divorce
Will my spouse become my business partner?
That outcome is uncommon. Courts and settlement agreements usually leave the business with the operating spouse and balance the division in other ways.
Do I need a business valuation expert?
Often, yes, particularly when the business is significant or the parties disagree about its value. A credible valuation can make settlement more likely and is important evidence if the case goes to trial.
What records should I gather?
Typically several years of business tax returns, financial statements, bank statements, payroll records, loan applications and ownership documents such as operating or shareholder agreements.