Grand Rapids Divorce Attorney | Business Owner Divorce

Business Assets and Debts in Michigan Divorce

When facing divorce as a business owner, understanding how your business interests are treated is crucial. Krupp Law Offices P.C. brings over 85 years of experience representing clients in complex divorce cases involving business assets.

Premarital Business

If a business was started before marriage, it is generally considered a premarital asset and awarded to the owner spouse. However, any increase in value during the marriage may be treated as marital property, depending on contributions by the other spouse.

Business Interests Acquired During Marriage

Businesses acquired during the marriage are marital assets. Courts typically award the business to the spouse most active in its operation, who then compensates the other spouse for their share of the net value. Compensation can be via offset, lump sum, or installment payments.

Inherited Business Interests

Inherited business interests may be treated as separate or marital property. Courts consider factors such as the length of marriage, donor intent, and whether the inheritance was commingled with marital assets. Long marriages or commingling often lead to inheritance being treated as marital property.

Even separate property can be divided if both spouses contributed to its acquisition or improvement, such as paying taxes or making enhancements.

Given the complexity of business asset division, consulting an experienced divorce attorney is essential to protect your interests.