How is a business divided in a divorce?
When a couple separates and one or both run a business, it’s usually part of the property pool to be divided. How it’s handled depends on the business and each person’s role in it.
The business is part of the property pool
Like other assets, a business’s value is counted when dividing property after separation — whether it’s a company, a partnership or a sole trader.
Valuing the business
This is often the hardest part. A business may need an independent valuation that looks at its assets, goodwill and income, so both sides are working from an accurate figure.
Keep, sell or buy out
Commonly one person keeps the business and the other is compensated with other assets or a payment, rather than the business being sold. The right approach depends on your situation.
Tax and structure matter
Company structures, family trusts and tax consequences can all affect the outcome, so advice from a lawyer experienced with business assets is valuable.
How to get advice the easy way
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This article is general information only and is not legal advice. For advice about your situation, post your matter and a matched Victorian law firm can help.