Divorcing Business Owners: Getting Fair Market Value Through Business Valuations
Last updated on April 8, 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.
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.
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.
Related Blog Posts
Four ways to protect your business in the event of divorce
The emotional realities of divorce are tough enough as they are but add in the complexities associated with property division and the process can quickly seem overwhelming. This is especially true when a family business is implicated in your marriage dissolution. If...
How Can I Protect My Business in a Divorce in Michigan
Divorce can have a major impact on your business. If you are a business owner, you may even stay in a bad marriage or put off filing for divorce because you worry about what it can do to your business. This is understandable and a natural fear since divorce can have a major effect on many aspects of your financial…
What Should We Do About Our Business During Divorce?
One of the most major assets that a divorcing couple may have to address is if the couple owns a family business together. Determining how to divide a family-owned business in an equitable manner that pleases both spouses can be challenging which is why it is helpful for divorcing couples to know about the different options for handling a family…
How Businesses Are Divided in a Divorce
There are different ways that couples in Michigan earn money throughout their marriage. Sometimes both spouses work and earn money, sometimes only one spouse works. Also, some may be employees of another company or independent contractors. Others may be the owners of their own businesses though and earn their money through their businesses. However, owning a business also means that…
The Importance of Prenups for Business Owners
Michigan newlyweds may not have a lot of money or other assets when they first tie the knot. However, this doesn’t mean that they won’t acquire assets in the future that they would like to account for. For instance, someone who starts a new company may want to claim ownership of it and protect any revenue generated while they’re married.…