Business owners face unique challenges when going through divorce. The company they spent years building may suddenly become one of the most contested assets in the case.
Is a Business Considered Marital Property?
In Michigan, businesses may be considered marital property if:
• The business was started during the marriage
• Marital funds were invested in the company
• The business increased in value during the marriage
Even if the business existed before the marriage, the increase in value during the marriage may still be subject to division.
Business Valuation
Courts often require professional valuations to determine the company’s fair market value.
Experts evaluate:
• Revenue and profits
• Assets and liabilities
• Market competition
• Goodwill and brand value
Different valuation methods can produce dramatically different numbers, making expert analysis critical.
Protecting the Business
Most business owners want to retain full control of the company after divorce. This is often accomplished by:
• Negotiating asset offsets
• Structured buyouts
• Settlement agreements involving other marital assets
With proper legal strategy, it is often possible to protect both the business and personal financial stability.
