If you’re a business owner facing divorce, one question might keep you up at night: can your spouse claim ownership of your business? The answer isn’t straightforward, but you need to understand the factors at play.
Understanding marital property in Ohio
In Ohio, the law typically treats property acquired during a marriage as marital property, which divides during divorce. It includes assets like homes, cars, and, in some cases, businesses. If you started a business during your marriage, your spouse may have a right to a portion of it.
How a court divides a business in a divorce
The court examines how the business formed, whether you started it before or during the marriage, and how much your spouse contributed to its success. Even if your spouse didn’t directly work in the business, they may still claim ownership. If they provided financial support or helped with household duties that allowed you to focus on growing the business, it could count in the court’s decision.
How to value a business
To determine what your spouse might be entitled to, the court asks a professional to appraise the business and assess its worth. Profits, assets, debts, and market value all play a role. If your spouse is entitled to part of the business, the court divides the value accordingly.
How to protect your business in a divorce
If you want to protect your business from a split, a prenuptial or postnuptial agreement can help. Additionally, keeping business and personal finances separate and maintaining clear records of when the business was established may support your claim that the business is separate property.
Though your spouse might have a right to part of your business in a divorce, understanding the rules will help you take steps to protect it and ensure a fair outcome.
