Saving a Michigan Business in Divorce

Protect Your Business and Financial Future

Saving a business in a divorce in Michigan is one of the most important concerns for business owners facing the end of a marriage. Many clients want to protect what they have built while ensuring a fair division of assets.

If you own a family business or hold an interest in a closely held company, you likely have questions about valuation, ownership, and how the court may treat the business during divorce.

Is the Business a Marital Asset?

One of the first steps in saving a business in a divorce in Michigan is determining whether the business qualifies as a marital asset.

Courts will evaluate:

  • When the business was created

  • Whether marital funds contributed to its growth

  • Each spouse’s involvement in the business

  • Whether the value increased during the marriage

Even if one spouse started the business before marriage, part of its value may still be subject to division.

How Courts Evaluate Business Ownership

Michigan courts carefully review ownership interests when dividing a business. Key considerations include:

  • Who legally owns the business

  • Each spouse’s percentage of ownership

  • Whether one spouse actively worked in the business

  • Contributions such as time, labor, or financial support

Understanding these factors is essential when saving a business in a divorce in Michigan.

Business Valuation in Divorce

Accurate valuation plays a critical role. Courts often rely on financial experts to determine fair market value.

This process may include:

  • Reviewing financial statements and tax returns

  • Assessing assets and liabilities

  • Analyzing income and profitability

  • Evaluating goodwill and future earning potential

Working with professionals ensures the valuation reflects the true worth of the business.

For more information on business valuation standards, visit the

American Institute of Certified Public Accountants (AICPA): https://www.aicpa.org

Strategies for Saving a Business in Divorce in Michigan

There are several effective strategies to protect your business:

  • Asset Offsets: One spouse keeps the business while the other receives different assets

  • Structured Buyouts: Payments made over time to compensate the other spouse

  • Negotiated Settlements: Agreements reached outside of court through mediation

  • Business Restructuring: Adjusting ownership or operations to minimize risk

In many cases, mediation can help preserve both the business and the relationships. Learn more about alternative dispute resolution through the

Michigan Courts: https://www.courts.michigan.gov

Why Strategy Matters

Every divorce involving a business is unique. A thoughtful legal strategy can:

  • Reduce financial disruption

  • Protect long-term income

  • Preserve business operations

  • Support a smoother transition after divorce

At Tabono Law, we guide clients through saving a business in divorce in Michigan with a focus on strength, clarity, and practical solutions. Our team works closely with financial experts to protect your interests and help you move forward with confidence.