As we discussed in our previous blog post, Michigan law treats businesses as marital property when they were formed or grew in value during the marriage. Therefore, making an accurate valuation of the business and strategic planning is essential to getting a fair settlement in your divorce case. Here, we are going to discuss the proactive steps business owners in Oakland County can take to protect their livelihood.
How Businesses Are Divided in Michigan Divorce
Once the value of the business has been determined, the judge will then look at dividing it based on the equitable division principles. Depending on your circumstances, the divorce court could decide to:
- Award the business to one spouse, with the other spouse receiving an offset in the form of other marital assets.
- Sell the business and divide the proceeds.
- Split ownership, particularly if both spouses are involved in day-to-day operations (this is rare due to practical challenges).
Factors the family court judge will consider when making this decision include:
- Whether the business was started before or during the marriage
- The involvement and contributions of each spouse
- The ability of one spouse to buy out the other
- Whether one spouse has the skill or experience to operate the business independently
- The earning capacity of each spouse outside of the business
- The overall division of marital assets and debts
Practical Steps You Can Take to Protect Your Business
Here are a few proactive strategies to help protect your business when preparing for a divorce in Oakland County:
1. Retain a Skilled Oakland County Divorce Attorney
Getting advanced legal advice about how you should prepare is critical. A knowledgeable family law attorney can help you prepare your case and guide you through the business valuation and settlement negotiations. Our team has been doing this for more than 30 years.
2. Keep Meticulous Financial Records
Accurate records are essential for determining the value of your business and proving separate property claims.
3. Explore Buyout Options
Consider negotiating a fair buyout in settlement negotiations with your spouse to retain full ownership.
4. Consult a Valuation Expert
Speak with your divorce attorney about hiring a CPA or certified business appraiser experienced with divorce-related valuations.
Should You Consult a Family Law Attorney About Your Business Before You Get Married?
Yes, taking proactive steps to protect your business can save you from major legal and financial issues later. A knowledgeable Oakland County family law attorney can assess risk, clarify ownership rights, and prepare a strategic plan for the future. Early legal guidance can make all the difference in preserving the value and control of your company. An attorney can review your business structure and help identify and address potential vulnerabilities. Further, an attorney can advise you on prenuptial and postnuptial agreements, which can reduce future risk in the event of a divorce.
Talk to an Experienced Oakland County Divorce Lawyer Today
At The Kronzek Firm, we regularly represent entrepreneurs, professionals, high asset families, and their spouses in business-related divorce cases throughout Oakland County, including cities like Troy, Novi, Bloomfield Hills, Southfield, and Royal Oak. Divorces involving business ownership are high-stakes matters. Whether you built your business from the ground up or supported your spouse’s venture, we can help you:
- Accurately determine the value of the business
- Identify marital vs. separate property interests
- Negotiate a fair and enforceable divorce settlement
- Protect your income, reputation, and long-term interests
📞 Let our experienced team guide you toward a secure financial future. Call our Farmington Hills office 24/7 at (248) 479-6200 to schedule a confidential consultation with our trusted Mid-Michigan divorce attorneys.
[Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. For guidance specific to your situation, consult with an experienced Michigan divorce attorney.]