Divorcing Business Owners: Getting Fair Market Value Through Business Valuations

Last updated on September 30, 2026

One aspect of Michigan divorces with which couples often struggle is how to divide their shared assets. If one of these shared assets is a business, the process can quickly become more complicated and emotional, particularly if both spouses want to keep their stakes in what they built together. Both spouses might also count on the income from their business to support themselves, further complicating matters.

Dividing a business interest through a divorce can be complex. It requires a business valuation to determine what the assets of a business are worth. If the spouses disagree on the value of the company, an appraiser must be retained to provide an expert opinion to help the court in making an award.

Often, two different appraisers offer competing valuations. When this happens, each appraiser testifies about how they determined the value and explains how they are qualified to make such a determination.

Bloomfield Hills family law attorney Lisa D. Stern can help protect your interest in your business during a Michigan divorce. For over 30 years, Lisa has represented spouses in divorce proceedings and protected their rights, including their ownership of a business. She can help you through the process and protect your rights.

Potential Outcomes For Ownership Of A Shared Business In A Michigan Divorce

• Buyout: In this scenario, one spouse purchases or “buys out” the other’s share of the business. This often involves one spouse paying a lump sum or structured payments over time to gain full ownership.
• Co-ownership: In some cases, both spouses may continue to own the business together post-divorce. This outcome requires a high level of cooperation and clear agreements on business operations and profit sharing.
• Sell and divide proceeds: The couple may decide to sell the business and split the proceeds. This option is common when neither spouse wants to continue the business or when a buyout isn’t feasible.
• Distributing other assets: Instead of selling the business, one spouse keeps the business while the other receives assets of equivalent value, like real estate or investments.

Protecting Professional Practices And Family Businesses In Metro Detroit

A business can mean more than an asset on a balance sheet. Divorce can raise different ownership and valuation issues depending on the type of business you own.

• Medical and dental practices: Income, equipment and goodwill can affect the value of a professional practice during property division.
• Tech startups: Equity interests, intellectual property and future growth can complicate the value of a startup during divorce.
• Family retail businesses: Family ownership, inventory and real estate can create additional questions about business value and each spouse’s interest.
• LLCs: An operating agreement may restrict transfers or voting control, but a Michigan court can still value the LLC interest as marital property.

Attorney Lisa D. Stern can help you address business-specific concerns during divorce and work with financial professionals when you need a detailed valuation.

Tips For Keeping Your Business In A Michigan Divorce

Navigating a divorce in Michigan while owning a business can be challenging. However, with the right strategy and guidance, you can increase your chances of retaining your business. Here are some essential tips to keep in mind:

• Understand the value of your business: Get a professional business valuation. Knowing the exact value of your business is crucial in negotiations with your spouse.
• Keep clear financial records: Maintain distinct boundaries between your personal and business finances. This clarity can help demonstrate that your business should remain separate from marital assets.
• Explore buyout options: Prepare to discuss how you could buy out your spouse’s share of the business, possibly using other marital assets or a payment plan.
• Minimize conflict with your spouse: A cooperative approach can lead to a more favorable outcome, especially when negotiating business ownership.
• Consider mediation or collaborative divorce: These alternatives to traditional divorce proceedings can provide more control over the outcome and may be more conducive to protecting your business interests.
• Prepare for financial compromises: Be ready to make concessions in other areas to retain full ownership of your business.
• Consult a knowledgeable attorney: Working with an experienced divorce attorney like Lisa D. Stern is crucial. A Michigan property division lawyer can provide valuable guidance and protect your rights throughout the process.

Business Valuation And Property Division FAQ

Owning a business can make a divorce in Michigan more complicated, especially when the business provides income for both spouses. The questions below address how courts may treat a business interest and when a valuation can help resolve disagreements over its value.

How does the Oakland County Circuit Court handle the division of an LLC during a divorce?

Michigan follows equitable distribution rules, so a court divides marital property based on what it considers fair under the circumstances. That does not always mean a 50/50 split. The court may review the LLC’s operating agreement, including any buy-sell terms that apply when a couple divorces. It also considers whether the business interest qualifies as marital or separate property. If the spouses mixed business and marital funds, that commingling may affect how the court treats the business and its value.

Can my spouse claim a share of a medical practice or business I started in Bloomfield Hills before we got married?

Your spouse may have a claim to some of the business’s growth even if you started the practice before the marriage. Michigan law distinguishes between passive and active appreciation. The value of the business before the marriage may remain separate, depending on the circumstances. However, the court may consider growth during the marriage if marital funds, either spouse’s work or your spouse’s support helped increase the business’s value. The court will look at the facts and contributions in the marriage.

Is a formal business appraiser always required for a divorce in Michigan?

No. If both spouses agree on the business’s value, they can reach an agreement without a formal appraisal. An appraisal can still provide useful support when the spouses disagree or the business has complex finances. Mediation or collaborative divorce may help the spouses agree on a value without hiring competing experts. Ms. Stern also works with trusted Metro Detroit financial professionals who can review the business’s records, income and assets to help determine its fair market value.

Business value can affect how you divide marital property and plan for life after divorce. Lisa D. Stern can help you review your options, including a buyout or exchange of other assets, while protecting your interests.

Contact A Detroit-Area Property Division Attorney Today

If you desire to maintain control or ownership of your business after divorce, the right legal help is vital. Attorney Lisa D. Stern can guide you through this tumultuous process and help you keep what you have worked so hard to create. Call her today: 248-973-7842.

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