What Happens To The Family Business During Divorce?

On Behalf of | Nov 17, 2022 | Divorce

There are millions of family businesses across the country, so it seems inevitable that some divorces include the settlement of the family business. If you and your spouse operate a business and are discussing divorce, you might wonder what will happen to the business in the process.

There are a few different paths for the family business in a divorce.


If one spouse can afford to buy out the other spouse’s interest in the business, that transfers ownership to one party and eliminates the mutual financial interest. This is an ideal option if you and your spouse are not on amicable terms.


If neither of you can financially afford to buy the other out of the business, consider selling it altogether. If you sell the business, you split the proceeds of the sale.

Joint Operation

Couples that separate on amicable terms can retain the family business and continue working together. If neither of you wishes to give up your interest in the business and you can work together well, this is often an ideal arrangement to preserve the company.


When neither party can afford a straight buy-out, but you do not want to sell the business, an asset trade-off might be the better option. For example, if you own a home together, one party can take possession of the home while the other gets the business.

The family business does not need to be a point of contention. Consider your options and find the best settlement for your situation.