Dividing Businesses In Divorce: Trust Your Case To Our Columbus Family Law Attorney
Last updated on November 14, 2025
Divorce involving a business can add layers of complexity to the property division proceedings, especially when the business is highly profitable and likely to remain so. That is why enlisting the services of an experienced divorce attorney is important.
Whether you, your spouse, or both of you own the business or if the business is co-owned with partners, property division can become a daunting task. At Gregg R. Lewis, ESQ., we have been handling property division cases in Columbus, Ohio, for over 40 years. We have the knowledge and experience to handle business valuation and division, helping ensure our clients receive a fair and equitable outcome.
Is A Business Marital Property?
In Ohio, businesses are considered marital property if they were acquired during the marriage. If one spouse actively participated in the business during the marriage or the business grew during the marriage, this can also be a factor in determining whether any part of the business is marital property during a divorce. In addition, if matrimonial funds or assets funded or supported the business, this can also lead to the business being considered marital property.
The division of marital property, including businesses, is governed by Ohio Revised Code (ORC) section 3105.171. This law requires courts to divide marital property equitably, considering various factors, such as:
- Length of the marriage
- Assets and liabilities of each spouse
- Economic needs and earning abilities of each spouse
Our knowledgeable divorce lawyer offers tailored advice about how the law applies to your situation. We can provide you with personalized representation based on the unique circumstances of your case.
Options For Handling Your Business In Divorce
Once a business is determined to be part of the marital estate, the next step is deciding how to handle it. This decision often carries emotional and financial weight, especially when the business represents years of work and sacrifice.
One spouse buying out the other is the first option. Here, one spouse can buy out the other’s share using other marital assets or financing. This works when one person wants to maintain full control and the other prefers a clean break. The buying spouse might:
- Trade other assets, like retirement accounts or real estate, to offset the business value
- Arrange financing to pay out the departing spouse over time
- Use a combination of immediate payment and structured payments
Keep in mind that financing the buyout over time keeps both parties financially connected longer than they might prefer. We assist clients in negotiating fair terms and preventing tax pitfalls during the transfer.
Continuing as co-owners can be another option. In this case, both spouses can stay on as co-owners after divorce. This arrangement works best when:
- The marriage ended amicably
- Both spouses have been actively running the business
- Clear boundaries and defined roles can be established
- Strong communication exists between both parties
This option rarely succeeds when the divorce is contentious. Even in friendlier separations, co-ownership can create tension in the working relationship. Our role is to guide clients in drafting agreements that outline each person’s responsibilities, profit-sharing terms and future exit options.
When keeping or sharing ownership is not practical, selling the business can provide closure. The proceeds are then divided equitably according to Ohio law.
However, this path has drawbacks:
- Sales take time and may not happen quickly
- You might not get the value you hoped for
- Market conditions affect what buyers will pay
- Business performance impacts the selling price
- Finding qualified buyers can be challenging
Though selling can be an emotional decision, especially for founders, it often provides a clean break and financial flexibility. We coordinate with valuation experts and buyers to help ensure our clients receive fair value and a smooth transition.
Letting go of a business you built hurts; years of effort can vanish in one ruling. We understand that pain. Our experience with high-value assets enables us to identify hidden pitfalls early, making the process as painless as possible by focusing on realistic solutions.
Consult A Trusted Columbus Divorce Attorney For Free
Whether you need to understand tax implications, business valuation or court representation, or need a mediator, our job is to help. We try to make a painful process as painless as possible by setting realistic solutions and expectations. Call Gregg R. Lewis, ESQ., at 614-721-6175 today to schedule a free consultation.