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Specialty tag(s): Divorce for Business Owners, Divorce

What Happens to a Closely Held Business During a Divorce?

Ryan R. Bauerle | April 3, 2024

When a business owner gets a divorce, the business will usually be part of the couple’s community property, meaning that it will be subject to the property division process. The value of the business will be determined, and then it will be split between the two spouses. This can be done in a few different ways:

• One spouse can buy out the other’s interest, leaving them as the sole owner of the business.
• The business can be sold, and the proceeds can then be divided.
• Both spouses can agree to remain co-owners of the business and operate it together. This is a risky option that doesn’t work for many couples, but if your divorce is amicable, it might work for you.

No matter which option you end up choosing, it’s crucial to be well-prepared for the process, which starts with making sure that you have plenty of documentation of the business’s value. You’ll also need an experienced divorce attorney who can help you navigate the division of your closely held business and reach the best possible outcome. If you need a lawyer to help you with your divorce, contact Goranson Bain Ausley for a consultation today.