What Happens to a Jointly Owned Business in a Montgomery County Divorce?

Are you getting a divorce in Montgomery county? If so, you will need to understand how business assets are managed and how the business can be divided if it is considered marital property.

A Montgomery divorce is already challenging, depending on the assets that need to be divided between both parties. It can become significantly more difficult if you own a business and get divorced.

Are you ready to take the leap and get a Montgomery divorce? If so, check out this article, which explains how a joint-owned business is handled during the divorce proceedings.

Is a Business Marital or Separate Property?

Montgomery County divorces can become more complex depending on the assets the couple owns together. Getting a divorce and owning a business can lead to a few questions regarding whether this is considered to be marital property or a separate property.

If the business was founded or invested in after the marriage, it falls into the category of a marital asset. However, if you founded or invested in the company before the marriage, it would be a separate property.

Although, there is still a chance that a business could be considered marital and separate property at the same time. This is because both parties may contribute to the business, which would make it more of a joint asset. For instance, you may be the original owner of the company, but your spouse helped make rent payments for the business location or invested in it in other ways.

Hiring a Montgomery divorce attorney can be incredibly helpful when determining what category your business falls into and what property you are entitled to.

How to Prove Business Ownership in Montgomery Divorce Cases

During the divorce proceedings, having the right evidence to prove what assets are your own is incredibly important. If you believe that the business is your own and not a marital asset, there are a few things you need to prove ownership:

  • Financial records: Have up-to-date records that showcase the businesses finances as well as the money you have invested into it. You should also include records of how much you have paid yourself.
  • Business use: It is much easier to prove that your business is personal property if everything related to your business is purely for business use. For instance, if you have a business vehicle, you need to provide proof that it is only used for your business and isn’t considered to be a personal asset.
  • Proof of involvement: If possible, try to provide documentation regarding your involvement in how the business runs. This could include your qualifications, investments, accounts, and customer relations.

Something to remember is that there is a strong chance of a business being named as a marital asset even if you have significant proof of ownership. If your spouse had any involvement in the business, this could provide evidence that it is still jointly owned to some extent.

The best way to ensure your business remains your own even during a divorce is to protect your business before getting married. Many are able to do this by having a prenuptial agreement that makes your business your own asset.

How Businesses Are Managed in Montgomery County Divorces

Divorce and owning a business together is going to make dividing the business between both parties a necessary part of the divorce proceedings. If it is determined to be marital property, the company will need to be split according to the percentage of it that is marital property. A financial expert is usually used to analyze the business and determine its value before it is divided between the spouses.

The financial expert can do this through a few different methods, such as:

  • Book value: This method helps to determine the worth of the business by estimating what would be left after selling off assets and satisfying liabilities.
  • Income approach: The business can also be evaluated by determining its ability to generate a profit.
  • Market approach: The business’s value can be determined by comparing it to similar companies that were sold in the recent market.

Splitting a Businesses During a Divorce

For situations that include a family-owned business and divorce, a decision will need to be made regarding who gets what. A decision can be reached in a few different ways, whether you want to take your divorce case to court or if the two of you can reach a decision with the help of a mediator.

You should take the additional step of hiring a Montgomery divorce attorney to help you navigate this process and protect your assets. They can help you determine how a jointly owned business will be divided and how you can prove your involvement in the business.

Sole Ownership

Sole ownership applies to divorce cases when the spouse who has the primary responsibility over the business would be rewarded full ownership of the business assets. Sole ownership is possible if both parties agree on this with the stipulation that the other spouse will get something of similar value. For instance, they may get full ownership of a different marital asset of comparable value.


Co-ownership is an option that is especially common in family businesses if both spouses have been very active in managing the business asset. This is when both spouses will continue to work together to run the business in much the same way they did when they were still married.
For co-ownership to work, the relationship needs to be very amicable, and both parties will need to have a clear understanding of what is expected of them and what they are entitled to.

Sell of the Business

One of the most common options for Montgomery divorces is to simply sell the business and split the profits between both parties. This is the easiest way of addressing a jointly owned business, as it allows both parties to dissolve the asset and walk away with no further business responsibilities.

Get in Touch With Richard P. Arthur, Divorce Attorney

Are you ready to file for divorce in Montgomery, OH? Richard P. Arthur, Attorney at Law, can help you file your divorce paperwork and get the assets you are entitled to. Richard P. Arthur has handled hundreds of divorce cases in Montgomery, OH, and can help you confidently navigate this process. Contact us today at 937-254-3738 for a consultation.