When Divorce Involves a Family Business: Protecting Assets and Relationships
Divorce is complicated enough—but when a family business is part of the marriage, the stakes are even higher.
For many couples, a business represents more than income. It may be a legacy, a livelihood, or the result of years of shared effort and sacrifice.
At the Law Office of Li-Shann Durst, PLLC, we help Virginia clients navigate divorce cases involving family businesses with careful planning, strategic negotiation, and a focus on long-term stability.
Is a Family Business Marital Property in Virginia?
Virginia follows the doctrine of equitable distribution, meaning marital property is divided fairly—not necessarily equally.
A business may be:
Marital property (created or grown during the marriage)
Separate property (owned before marriage or received as a gift or inheritance)
Part marital, part separate (common when a business existed before marriage but increased in value during the marriage)
Determining how a business is classified is one of the most important steps in a divorce involving business assets.
How Are Family Businesses Valued?
Before a business can be divided, it must be properly valued. This often requires:
Financial records and tax returns
Expert business valuation professionals
Analysis of income, assets, goodwill, and liabilities
Valuation methods may include:
Income-based approaches
Asset-based approaches
Market-based comparisons
Accurate valuation ensures that both parties understand the true financial picture and helps avoid disputes rooted in speculation or mistrust.
Options for Dividing a Business in Divorce
There is no single “right” way to divide a business. Common solutions include:
Buyout
One spouse retains the business while compensating the other with cash or offsetting assets.
Co-Ownership
In rare cases, former spouses continue to co-own the business—often temporarily.
Sale of the Business
The business is sold and proceeds are divided.
Offset with Other Assets
One spouse keeps the business while the other receives a greater share of non-business marital assets.
The best approach depends on financial realities, future earning capacity, and whether the spouses remember they may still need to interact professionally.
Why Collaboration Matters in Business-Related Divorces
Divorce litigation can be disruptive to business operations, employees, and customers.
For this reason, mediation or collaborative divorce is often especially effective in cases involving a family business.
These approaches allow couples to:
Keep financial details private
Minimize disruption to the business
Develop creative, tax-efficient solutions
Preserve professional reputations and relationships
Li-Shann Durst frequently works with financial professionals and neutral experts to help business-owning clients reach practical, sustainable agreements.
Planning Ahead Can Make a Difference
If you own a business and are contemplating divorce—or even marriage—advance planning matters.
Marital agreements, thoughtful business structuring, and early legal advice can dramatically reduce conflict if the relationship changes later.
Facing Divorce With a Business at Stake?
If your divorce involves a family business, experienced legal guidance is essential to protect both your financial future and your professional legacy.
📞 Contact the Law Office of Li-Shann Durst at (703) 443-4762 or schedule a confidential consultation.
We help Virginia clients resolve complex divorce matters with clarity, discretion, and respect for what they’ve built.
Disclaimer
This article is for informational purposes only and does not constitute legal advice. Business-related divorce cases are highly fact-specific. Please consult an attorney for advice tailored to your situation.