Columbus, OH Business Interests Attorneys
Divorces are difficult enough without worrying about how to handle a family-owned business. We help you navigate business-related decisions during a divorce by working to protect your interests.
Whether you have a corporation, LLC, partnership, limited partnership, or sole proprietorship, our experienced attorneys can guide you through the business valuation process and help protect your interests.
Business divorce cases involving significant assets, complex ownership structures, or disputed valuations rarely succeed on legal expertise alone. At Borshchak Law Group, we build a team around your case – drawing on a trusted network of outside professionals who provide the analysis, data, and expert testimony needed to evaluate risk, calculate exposure, and strategize the best path forward.
Uncovering hidden income, tracing assets, and analyzing complex financial records to build a court-ready picture of the business’s true financial position.
If you or your spouse owned the business before you got married, you don’t have to divide your assets. You should arrange for business valuation if:
One of the most misunderstood issues in business divorce cases is the distinction between separate and marital property – and how appreciation of separate property can create a marital interest. Understanding whether appreciation is ‘active’ or ‘passive’ can significantly affect how a business or asset is divided.
Passive appreciation occurs when the value of separate property increases due to market forces or economic conditions – not because of any effort by either spouse. For example, if one spouse owned a business before marriage and its value increased simply due to favorable market conditions, that increase may remain separate property. The key factor is that neither spouse’s contributions drove the growth.
Active appreciation occurs when the value of separate property increases due to the efforts, contributions, or involvement of either spouse during the marriage. For example, if one spouse owned a business before marriage but both spouses contributed to its growth – through labor, management decisions, or marital funds – that appreciation may be considered marital property and subject to division. This is a critical distinction that requires expert analysis.
Proving or disproving active appreciation requires detailed financial analysis, historical records, and often expert testimony. Our attorneys work closely with forensic accountants and business valuators to trace the source of any appreciation - protecting your separate property interests or establishing a marital claim where one exists. Under Ohio Revised Code Section 3105.171, the burden is on the party asserting separate property to trace it clearly.
Dividing business assets in a divorce requires specialized knowledge and careful analysis. Our attorneys work with experienced valuation professionals to determine the true worth of your business, ensuring you make informed decisions.
We help many couples make important decisions about their divorce business assets by working to accurately assess the business’ value and protect each party’s interests.
Current and historical revenue, profit margins, and cash flow are examined to determine the earning capacity and financial health of the business. Forensic accountants analyze tax returns, financial statements, and bank records to build a comprehensive picture. Trends in revenue growth or decline over the past several years can significantly influence the final valuation figure.
All tangible and intangible assets, including equipment, inventory, intellectual property, and outstanding debts, are factored into the valuation. Real estate holdings, vehicles, and accounts receivable add to the asset column, while loans, leases, and pending lawsuits reduce the net value. A thorough inventory prevents either party from being shortchanged during the division process.
Industry trends, competitive landscape, and market position all influence the fair market value of the business during divorce proceedings. Comparable sales of similar businesses in the same industry provide benchmarks for valuation experts. Economic conditions, regulatory changes, and emerging market opportunities are also weighed to determine a realistic and defensible value.
The reputation, customer relationships, and brand recognition built over time contribute to the overall value beyond just physical assets. Under Ohio Revised Code Section 3105.171(A)(3), marital property includes business interests and their associated goodwill. Ohio courts distinguish between enterprise goodwill, which belongs to the business, and personal goodwill, which is tied to the individual owner. This distinction is critical because only enterprise goodwill is typically divisible as marital property in an Ohio divorce.
The history of how the business was founded, grown, and operated is a critical valuation factor. Courts and experts examine how long the business has been operating, its trajectory over time, major milestones or setbacks, and whether its current value reflects a temporary condition or an established trend. A business with a long, stable history of profitability is valued differently than one in its early growth stages.
Who controls the business – and how much control they have – directly affects its value. A minority ownership interest, for example, is typically discounted because the minority owner cannot unilaterally make business decisions. Conversely, a controlling interest commands a premium. The operating agreement, shareholder agreements, and voting rights all factor into how control is assessed and valued during divorce proceedings.
