We are continuing our conversation with Dave Joley, an attorney from Arnold Terrill Anzini, P.C., and today we’re looking at how divorce affects your business. What should you do before you even think about getting a divorce and what happens when the matter goes to court?
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Dave has been in practice for about 12 years and has a broad focus, representing clients in multi-disciplines such as criminal matters, business matters, and divorce. Arnold Terrill Anzini, P.C. is located in Fort Wayne, Indiana.
How Divorce Affects your Business – Key Points
- What to do if a business owner is faced with a divorce situation and no prenuptial agreement.
- Divorce puts the business owner in a difficult position because it’s impossible to separate business from personal life.
- You must contact an attorney in your area as rules on family law and divorce are state-specific therefore.
- Pre-trial mediation: getting an agreement vs. taking matters to trial.
- Talk to an attorney and a CPA before the divorce process begins.
- How the business’s value is determined.
- The owner can negotiate payment terms if an enterprise is not liquid.
- What is the purpose of a provisional order hearing?
- Don’t speak to an attorney after the court has already made a ruling.
This episode is a must-listen if you own a business.
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Related reading: how to protect your business before getting married · business valuations and determining fair value · choosing the right corporate structure for your business
Protecting Your Business Assets Before and During Divorce Proceedings
One of the most overlooked tools for business owners is a buy-sell agreement, which can establish a clear valuation method and ownership transfer process before any marital dispute arises. Having this document in place means the business’s value and future aren’t left entirely to a judge’s interpretation during divorce proceedings.
Business valuation is often one of the most contested elements in a divorce case involving an owner-operated company. Courts may bring in a forensic accountant or independent appraiser to determine what the business is actually worth, including goodwill, intellectual property, and future earning potential — all of which can significantly affect the final settlement.
Even if divorce feels like a distant concern, business owners should treat asset protection planning the same way they treat insurance: something you arrange before you need it. Regularly updated operating agreements, clear separation of personal and business finances, and documented ownership records can all reduce complications if a divorce does occur.