Dividing a Business in a Missouri Divorce: What to Expect and How to Prepare
Divorce can be complicated—especially when a business is involved. Whether you or your spouse owns a small family business, a professional practice, or a larger company, dividing business interests in a Missouri divorce requires careful planning, valuation, and negotiation.
At Lotspeich Law, LLC, we help clients understand their rights and protect their financial future when a business is on the line. Here's what you need to know if you're facing a divorce involving a business in Missouri.
Is the Business Marital or Separate Property?
One of the first steps in dividing a business is determining whether it’s marital property, separate property, or a combination of both.
Separate Property: If one spouse started the business before the marriage and kept it entirely separate (no co-mingling of funds or marital involvement), it may be considered separate property.
If the business was established before the marriage but experienced a significant rise in value, there might still be a marital interest in the business, but only to the extent of that increase. This situation is very fact specific and may need further investigation/inquiry by your attorney.
Marital Property: Marital property is defined by Sect. 452.330 RSMo. If the business was started during the marriage, then it is probably marital property. If it was started during the marriage or acquired during the marriage, it is likely marital property unless one of the following applies:
(1) The business/business interest was acquired by gift, bequest, devise, or descent;
(2) The business/business interest was acquired in exchange for property acquired prior to the marriage or in exchange for property acquired by gift, bequest, devise, or descent;
(3) The business/business interest was acquired by a spouse after a decree of legal separation;
(4) The business/business interest was excluded by valid written agreement of the parties (prenuptial agreement).
Missouri is an equitable distribution state, meaning the court will divide marital assets fairly, though not necessarily equally.
Business Valuation: Know What It’s Worth
A key component in dividing a business is valuation. You can’t divide what you don’t know is worth.
There are a few methods a financial expert might use to determine value:
Asset-based approach: Looks at the business’s assets minus its liabilities.
Market-based approach: Compares the business to similar businesses recently sold.
Income-based approach: Evaluates the business’s earning potential.
An expert can be instrumental in valuing the business. Valuation is frequently a contentious aspect of a business-related divorce. It’s advisable to seek expert advice early in the divorce process, as this process can be time-consuming.
Common Ways to Divide a Business
Once value is determined, there are several ways a business can be divided in a Missouri divorce:
Buyout: One spouse keeps the business and buys out the other’s interest using cash, property, or a structured settlement.
Co-Ownership: Both spouses keep a stake in the business and continue operating it together. This is rare and usually only works when the parties can work amicably.
Sale of the Business: The business is sold and the proceeds are divided. This is often a last resort, especially if the business is the primary income source.
Tips for Business Owners Facing Divorce
Gather Documents Early: Tax returns, profit and loss statements, balance sheets, payroll records, and bank statements are essential.
Avoid Commingling: If you want to claim your business as separate property, avoid mixing marital and business finances.
Consider the Emotional Attachment: Think practically, not emotionally. Your goal is financial stability and fairness—not revenge.
Prepare for Discovery: If your spouse is not involved in the business, expect that they (or their attorney) will want full transparency.
Hire the Right Professionals: A family law attorney with business experience and a solid forensic accountant are key players on your team.
What Spouses of Business Owners Should Know
If your spouse owns a business, you may be entitled to a portion of its value—especially if:
You contributed to the business directly or indirectly
Marital funds supported the business
The business increased in value during the marriage
Don’t assume you’re at a disadvantage just because your name isn’t on the paperwork. Missouri law looks at the substance of ownership and contribution—not just titles.
Let Lotspeich Law Help Protect What Matters Most
Dividing a business in a divorce is never simple, but with the right legal guidance, you can move forward with confidence. At Lotspeich Law, LLC, we bring a balanced, strategic approach to every case—whether you're a business owner or the spouse of one.
We’ll work to protect your interests, secure a fair resolution, and help you plan for a strong financial future.
Ready to talk? Contact us today to schedule a consultation.
