How Is A Business Divided In A Divorce?

Last updated on March 26, 2025

The potential losses in a divorce are immense for those who own businesses. Division of business interests upon divorce presents extraordinary challenges that demand extensive legal experience.

Zashin Law has represented business owners before every level of state courts in Ohio, and often throughout the nation. This experience uniquely positions us to protect what you have worked so diligently to build.

Ohio’s Equitable Distribution Standard And Your Business

This critical distinction means the court aims for a fair – not necessarily equal – division of assets. When determining how a business valuation should be carried out, Ohio courts consider:

• Each spouse’s direct and indirect contributions to the business
• The duration of the marriage
• The timing of the business’s formation or acquisition
• The role each spouse played in the business’s growth
• The business’s current and projected value
• The tax implications of various division scenarios
• Each spouse’s economic circumstances following divorce

In uncontested divorces, those situations where the parties to the divorce settle their case by agreement, spouses retain significantly more control over the outcome of the business division. This nuance can distinguish between preserving operational control and losing everything you have built. Our firm, recognized by Chambers and Partners, Best Lawyers, and selected for inclusion in Super Lawyers, as well as other prestigious, independent lawyer rating services, has successfully navigated these complex divorce factors for business owners across Ohio and beyond.

Premarital Vs. Marital Businesses Matters In Divorce

If you launched your business before saying “I do,” it is generally considered separate property – yours alone. However, if marital funds, time or effort enhance its value during the marriage, its growth and appreciation may be deemed marital property.

A business founded after the wedding bells is typically marital property, subject to division. Both spouses may have a claim – especially if one indirectly supported the other’s entrepreneurial pursuits.

Prenuptial Agreements And Business Evolution

Designating a business as “separate property” in a prenuptial agreement could be a lifesaver. But your prenup’s language matters. If the prenuptial agreement only names the original business, a new enterprise started mid-marriage might not be covered. Our attorneys, including Andrew Zashin, ranked in Chambers’ HNW Guide for family/matrimonial law, have seen prenups tested in many ways, including courtrooms. We have also navigated cases where new business, spinoffs and overseas businesses complicate matters, requiring mirror agreements across jurisdictions.

We Deliver Results That Match Your Stature

To safeguard your business or pursue what is rightfully yours, call Zashin Law via 888-875-5772 or fill out our online contact form for a consultation. Whether in Cleveland, Ohio, across the U.S. or abroad, we are here to quarterback your case with tenacity.