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Closely Held Businesses in Divorce

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Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C.

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Written/Reviewed By:

Barry S. Kantrowitz, Esq.

Last Updated: Aug 31, 2026

Read Time: 3 mins

Business and Divorce: What Happens?

Family Lawyers Explain How to Protect Business Interests

When spouses own a family or closely held business, it can often be a point of contention in divorce. There are three main questions to evaluate when thinking about business and divorce, and each do not always have simple answers:

The first question is whether a business interest is a marital or separate property, or partially marital and partially separate;
The second question is how much the business interest is worth; and
The third question is how spouses can equitably divide the business.

Our divorce attorneys will guide you through these questions regarding your closely held businesses during a divorce in a professional and efficient manner.

Are Business Interests Counted in Property Division in Divorce?

Generally, any asset accumulated after marriage will be presumed to be marital property. Separate property was owned prior to marriage or was inherited after marriage. However, whether a business is marital property or separate is not always a black or white issue. Property that was once separate may be changed (or “transmuted”) into marital property if it is comingled with marital property, or if both spouses contributed to the worth of the property.

What is the Value of My Business in Divorce?

The second inquiry regarding a business interest in divorce is valuation, or determining how much the interest is worth. This can be an incredibly complex question that is best determined by divorce forensic valuation experts.

It is extremely important that a divorce forensic valuation expert understand the differing ways of valuing a business and understand a valuation for divorce may differ than a pure market-based approach. For example, a business evaluation regarding spousal interests may include discounts for:

Lack of control
Lack of marketability
Lack of transferability and more

How Can Spouses Divide a Business Interest?

A common problem, even after valuation and division has been finalized by settlement or trial, is to implement the split. Commonly, one spouse will buy out the other’s interest in the company. However, this may present problems if the spouse does not have enough cash on hand to buy out the other’s interest. In such cases, there are a few options, including but not limited to taking out loans, bartering illiquid assets with your spouse or liquidating other assets awarded in the split.

How Can I Protect Business Interests?

One way to plan against businesses becoming problematic assets in divorce is to have a prenuptial agreement or postnuptial agreement in place. However, if you do not have an agreement to fall back upon, we can guide you through the division of the business and other property and possible alimony.

A divorce attorney who handles business assets in divorce proceedings can guide owners through this process and will know respected divorce forensic valuation experts. Together, you can determine the value of your business during a divorce and plan for any outside challenges that may be brought up during proceedings. Please contact our law firm now to set up a consultation.

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   Kenny Perlow 
 20 days ago
 
 
 Trustindex verifies that the original source of the review is Google. KGG Law, and Barry Kantrowitz in particular, set the bar high for what a thorough, practical, strategic, compassionate and smart lawyer can be. Everything about Barry's advice and representation was exemplary and the stress mitigation that resulted was invaluable. On top of that, the ultimate result Barry achieved was beyond what was reasonable to expect and we are forever grateful. Often, people say that you hire a lawyer to prevent a problem. Sometimes, unfortunately, you need an attorney to solve a problem and I could not recommend Barry and his firm any more highly in that regard.
  
 
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   Aliza Ali 
 84 days ago
 
 
 Trustindex verifies that the original source of the review is Google. My dad had a great experience with this law firm. From the very beginning, the team was professional, knowledgeable, and always willing to answer our questions. They kept us informed throughout the entire process and made what could have been a very stressful situation much easier to handle. We truly appreciated their dedication, honesty, and hard work. Thanks to their support, my dad felt confident every step of the way. We are very grateful for everything they did and would highly recommend this firm to anyone looking for reliable legal representation.
  
 
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   Jana Montero 
 87 days ago
 
 
 Trustindex verifies that the original source of the review is Google. I had a wonderful experience working with Sam Smith. He was very responsive, thorough, and easy to work with from start to finish. He walked me through everything clearly and made what started as a very stressful situation for me into something completely manageable. I would not hesitate to recommend him and the firm!
  
 
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   Mike Sakmann 
 93 days ago
 
 
 Trustindex verifies that the original source of the review is Google. I sought legal advice regarding an employment matter and had an excellent experience working with Sam Smith, Esq. at KGG Law. Sam was thorough, attentive, and took the time to listen carefully to my concerns before providing clear, thoughtful guidance. I appreciated the professionalism and care shown throughout the process, and I would confidently recommend KGG Law to anyone in need of legal assistance.
  
 
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   Liz Hecker 
 99 days ago
 
 
 Trustindex verifies that the original source of the review is Google. I can't say enough about this firm. They manage to comfort you during the whole legal process while staying professional and doing what is right. I would recommend them to anyone and also hire them again if I need legal help.
  
 
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   Brandy Miller 
 122 days ago
 
 
 Trustindex verifies that the original source of the review is Google. Kate is the best. She helped me very quickly, and was very attentive with all of my needs. So thankful for her
  
 
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   Mike Greenspan 
 135 days ago
 
 
 Trustindex verifies that the original source of the review is Google. Kate Carballo is a dedicated, passionate, and creative attorney whom I had the pleasure to lecture with at a state trial lawyer's conference. Kate's lecture demonstrated how she uses her innovative and "out-of-the-box thinking" to achieve outstanding results for her injured clients. That Kate is certified by the Supreme Court of New Jersey as a civil trial attorney is a testament to her skills, experience and commitment to excellence.
  
 
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   Jonathan Sampson 
 142 days ago
 
 
 Trustindex verifies that the original source of the review is Google. Was referred to KGG law by a friend and could not have asked for better legal representation. They walked me through every step of the process after my accident and began every call with “ how are you feeling” which was just one example of how much they care about their clients. They handled my case very efficiently, professionally and courteously. My attorney Kate Carballo was a rock star! So clearly experienced, she consistently made me feel at ease with the process. Highly recommend
  
 
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   Vinnie Kung 
 145 days ago
 
 
 Trustindex verifies that the original source of the review is Google. We had a great experience with the team at KGG Law. While it was a traumatic time for our family, they made it very easy for us and explained all of our options. They even performed due diligence to make sure that after our settlement, there would be no further issues which I think is even more important than the settlement itself. Thank you!
  
 
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   Lynn Gill 
 146 days ago
 
 
 Trustindex verifies that the original source of the review is Google. The personnel at this business were second to none. Everyone was super responsive and amazing to work with. For any future legal needs, this will be my go-to, hands down.

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