Greco Law

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Greco Law

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Keep Your Business Intact After Divorce

Last updated on July 7, 2025

When dealing with divorce as a business owner, you have a unique challenge that requires skilled and experienced legal support. The fate of the company you worked so hard to make a success depends on you hiring the right divorce attorney. At Greco Law, we will draw on our negotiation and litigation skills to aggressively fight to keep your business intact.

Property division can be complicated when there are valuable assets involved. An ownership interest in a business can be one of the most important assets that you and your spouse must reckon with. If the business is determined to be marital property, both you and your spouse are legally entitled to an equitable share in the company, even if only one of you ever directly contributed work and money into it.

What Happens To A Business Ownership Share In Divorce?

There are three basic options for settling ownership in a business:

  • The business-owning spouse keeps the business, in exchange for other assets
  • The spouses dissolve the business and split the proceeds
  • The spouses continue to jointly own the business

The first option is the one many of our clients choose. Successful preservation of a business through the divorce process requires a lawyer with strong skills in a variety of areas. We will make sure you know the full and accurate value of your ownership share. Our family law attorneys are experienced litigators who can effectively fight for your interests in court if necessary.

Many business owners take preventative measures to preserve their companies before the divorce becomes a possibility. If you and your spouse have a prenuptial agreement, or if you and your business partner’s contingency plan is in place, we will help you enforce the terms of that contract.

Frequently Asked Questions On Business In Divorce

Dividing a business in a divorce involves emotional, legal and financial concerns that require careful handling. Understanding your rights and responsibilities is key to protecting your interests, whether you are the business owner or a nonowner spouse.

Below are answers to common questions about how businesses are handled during divorce.

How is a business valued during a divorce?

A business is valued by a financial expert through a formal business valuation. The expert looks at factors like:

  • The business’s income and profits
  • Assets and liabilities
  • Market value compared to similar businesses
  • Goodwill (both personal and enterprise)

Courts may use different valuation methods, such as the income approach, market approach or asset approach. In many cases, both spouses may hire their own experts to help ensure fair and accurate results.

Can my spouse claim a part of my business if they have not been involved?

Yes, they can. Even if your spouse was not directly involved in running the business, they may still have a legal right to a share of it, depending on how the court views fairness in your specific case. Courts often look at:

  • Whether the business was started during the marriage
  • Whether marital funds were used to support or grow the business
  • Whether the business increased in value during the marriage

The fact that one spouse did not participate in day-to-day operations does not necessarily exclude them from having a financial interest.

What are the tax implications of dividing a business in a divorce?

Dividing a business can have serious tax consequences. While transfers of property between spouses during a divorce are usually nontaxable, selling part of a business or transferring shares to satisfy a settlement may result in:

  • Capital gains taxes
  • Changes in business structure that affect tax filings
  • New reporting requirements for the IRS

It is important to involve a tax adviser and an attorney early in the process to avoid surprises and help structure the division in a tax-efficient way.

How are debts related to the business handled in a divorce?

Business debts are divided based on whether they are considered marital or separate. Courts may evaluate:

  • When the debt was acquired
  • Who benefited from the debt
  • Whether the debt was used for business or personal purposes

Both spouses may be responsible if the debt is marital, even if only one was involved in the business. It is essential to review business records and clarify responsibility during the divorce settlement.

Fight For Your Business. Contact Us And Schedule A Consultation.

You deserve to control the destiny of your business. Our exclusive focus on family law gives us the tools and determination to find a solution that stops your divorce from interfering with your business goals. Schedule a consultation at Greco Law by calling 614-963-9154. We represent clients in Columbus and throughout central Ohio.