Dividing a Family Business During Divorce

Written By Alycia Kinchloe

For many families, a business represents years of hard work and is often one of the most valuable marital assets.

A business may need to be professionally valued to determine its fair market value. Factors such as revenue, debts, goodwill, equipment, and future earning potential can all influence the valuation.

Depending on the circumstances, spouses may:

  • Continue co-owning the business

  • One spouse buys out the other's interest

  • Offset the business with other marital assets

  • Sell the business and divide the proceeds

Every option has legal and tax implications. A thoughtful strategy can help preserve the business while protecting each spouse's financial interests.

Alycia Kinchloe
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