Kline Legal Group P.L.C.

Will you lose your business during your divorce?

You regularly put in long hours to ensure your business is successful. You also have a plan for taking your company to the next level. While your marriage is heading for divorce, your business has never been better. Will you lose your business during your divorce? 

In Michigan, judges divide marital property equitably. Therefore, if you are going through a divorce, you must mentally divide your assets into marital and separate categories. As you may suspect, doing so can be challenging. In fact, deciding whether you own your business may require a complicated legal analysis. Still, you should understand a few things about business ownership during and after divorce proceedings

Marital versus separate property 

If you owned your business before your marriage, there is a good chance a judge will not divide the company between you and your soon-to-be ex-spouse. There are two exceptions, however. First, if your partner contributed to the acquisition, accumulation or improvement of the business, a judge may award a portion of the company to him or her. Also, if there are insufficient marital assets to provide for your spouse after divorce, a judge may choose to tap into your otherwise separate business. 

Valuing the business 

If you started your business during your marriage, a judge may consider it to be marital property. As mentioned, Michigan law requires judges to split marital property in an equitable way. Therefore, you must know how much your business is worth to better plan for your divorce proceedings. Generally, there are two ways to value a business during divorce: book value or market value. As you may suspect, these valuation methods often lead to wildly different conclusions. Accordingly, you should probably plan to hire your own expert to evaluate the worth of your business venture.   

You have a great deal of energy, money and emotion invested in your business. With a bit of knowledge and the right plan, you may be able to increase the likelihood of retaining business ownership after your divorce.  

No Comments

Leave a comment
Comment Information
Email Us For A Response

Contact Kline Legal Group P.L.C.

Kline Legal Group P.L.C.
483 Little Lake Drive, Suite 200
Ann Arbor, MI 48103

Phone: 734-249-6100
Fax: 734-302-7222
Map & Directions

Contact Our Office

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy