Business Owners & Divorce in Virginia

Divorce can shake the foundation of everything you’ve built, including your business. For many Virginia entrepreneurs, a company represents years of sacrifice, long nights, and personal investment. At Mahoney Richmond Thurston, PLLC, we understand what’s at stake. Our team helps business owners protect their hard work and financial future through strategic, informed guidance grounded in Virginia family law.

Will My Business Be Considered Marital Property?

Under Virginia’s equitable distribution laws, a business may be classified as marital, separate, or a hybrid of both. The court will examine several factors to determine how much of the business, if any, is subject to division.

• Separate Property: A business owned before the marriage may be considered separate property. However, if marital funds were used to support the business or if its value increased due to the efforts of either spouse during the marriage, a portion may become marital property.
• Marital Property: A business started during the marriage is typically considered marital property, even if only one spouse was actively involved in its operations.
• Commingled Assets: If personal and business finances were mixed, it becomes more complicated to distinguish separate from marital assets.

Because every situation is unique, a thorough review by an attorney is necessary to determine how your business will be treated and to protect your interests.

How Is a Business Valued During Divorce?

A fair and accurate valuation is a critical step in a divorce involving a business. This process establishes the company’s worth for asset division. Common valuation methods include:

• Income-Based: Focuses on the business’s expected future earnings.
• Market-Based: Compares the business to similar companies that have recently been sold.
• Asset-Based: Calculates the net value of the company’s assets and liabilities.

Our firm works with trusted financial professionals to conduct defensible valuations based on detailed documentation.

What Happens to the Business After Valuation?

Once your business has been valued, the next step is determining how it will be treated in the overall divorce settlement. This stage often brings some of the most pressing and emotional questions for business owners:

Will I Have to Sell the Business?

Selling a business in a divorce is usually a last resort. It typically happens only when both spouses agree or when liquidation is the only practical way to divide the marital estate fairly.

Can I Buy Out My Spouse’s Share?

A buyout is a common and often preferred solution. It allows one spouse to retain full ownership and operational control of the business by compensating the other for their share of the marital interest.

Can We Continue to Co-Own the Business?

While continued co-ownership is possible, it can be complicated. This arrangement requires detailed legal agreements that define roles, responsibilities, profit distributions, and dispute-resolution terms to minimize future conflict.

The best path forward depends on the business’s structure, its income, and the relationship between the parties. The divorce attorneys at Mahoney Richmond Thurston, PLLC can help you evaluate your options and negotiate the most practical and financially sound outcome for your circumstances.

How an Attorney Can Help Protect Your Business in a Divorce

Professional legal guidance is vital for protecting what you have built. A skilled attorney can provide strategic protections for your business assets and financial stability by:

• Overseeing an accurate business valuation process.
• Structuring settlements to preserve business liquidity and your ownership control.
• Negotiating buyout terms or asset offsets that align with your long-term goals.
• Coordinating with accountants, appraisers, and other financial planners.
• Drafting and upholding pre- or post-marital agreements to safeguard business interests.

The team at Mahoney Richmond Thurston, PLLC, has extensive experience with high-asset and business-owner divorces in Virginia. We approach these cases with a balance of professionalism and personal attention.

Protect Your Business and Your Future

Your business represents years of dedication and sacrifice. Let Mahoney Richmond Thurston, PLLC, help you protect it. Contact our Virginia Beach divorce lawyers today to discuss your options.