Divorce Financial Checklist for Business Owners

Business ownership adds significant complexity to a divorce. This checklist covers valuation, income calculation, and how to protect your business interests.

17 items across 4 categories

Business Valuation

Hire a certified business valuator (CBV/ABV/CVA)
Determine the marital portion (how much of the business was built during the marriage?)
Choose valuation method: income approach, market approach, or asset approach
Separate personal goodwill (non-marital) from enterprise goodwill (marital)
Get valuations from both parties - expect different numbers

Income Calculation

Business income for alimony/support purposes differs from the P&L
Add back non-business expenses paid through the business
Identify owner perks (vehicle, phone, travel) that are really compensation
Average income over 3 - 5 years if highly variable

Settlement Options

Buy-out: one spouse keeps business, pays the other their share
Co-ownership: both remain owners (usually not recommended)
Sale: sell the business and split proceeds
Structured payments: buy-out paid over time (reduces liquidity pressure)

Protect Your Business During the Divorce

Do not make major business decisions without attorney's advice
Document all business expenses carefully
Do not comingle personal and business funds
Keep employees and partners informed appropriately - rumors hurt value

See the financial impact of your decisions

SettleLens models your settlement scenarios so you can negotiate with clarity.

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SettleLens provides financial scenario modeling for informational purposes only. Not legal advice. Always consult a qualified family law attorney before making settlement decisions.