Dividing a Business in a Utah Divorce? How to Protect Your Livelihood

 Divorce can be one of the most challenging experiences in life, and when a business is involved, the stakes are even higher. In Utah, business owners facing divorce must navigate complex legal and financial issues to protect their livelihood. Understanding the key factors that influence business division in a divorce can help ensure a fair outcome and safeguard your financial future.

How Is a Business Divided in a Utah Divorce?

In Utah, marital property is subject to equitable distribution, meaning that assets—including businesses—are divided fairly, though not necessarily equally. If the business was started or significantly grown during the marriage, it may be considered marital property. Courts consider several factors when determining business division, including:

  • The business's value and financial standing

  • Whether the business was established before or during the marriage

  • The involvement of both spouses in the business

  • Contributions made by the non-owner spouse, whether financial or non-financial

  • The ability of the business to continue operating after division

Given these complexities, working with experienced legal professionals like Blackley & Wingad, Attorneys at Law can help ensure you receive the best possible outcome.

Valuing the Business in a Utah Divorce

A critical step in dividing a business is determining its value. Business valuation typically requires a professional appraisal using one or more of the following methods:

  • Market Approach: Comparing the business to similar businesses that have been sold.

  • Income Approach: Assessing the company’s revenue, profits, and projected future earnings.

  • Asset Approach: Evaluating the business’s tangible and intangible assets.

The court may require an independent valuation to ensure fairness. Having a trusted legal team, like Blackley & Wingad, Attorneys at Law, can help you navigate this process and protect your interests.

Protecting Your Business in a Divorce

If you own a business, it is essential to take proactive steps to minimize the impact of a divorce. Here are a few strategies that may help:

  1. Pre- or Postnuptial Agreements – If you have a legally binding prenuptial or postnuptial agreement outlining business ownership terms, it can provide clarity and protection during a divorce.

  2. Buy-Sell Agreements – This type of agreement outlines how ownership shares will be handled in the event of a divorce.

  3. Keeping Business Finances Separate – Avoid commingling business and personal finances to help establish the business as separate property.

  4. Fair Compensation for Spousal Contributions – If your spouse contributed to the business’s success, compensating them fairly through other marital assets may help prevent the need for a business sale.

  5. Mediation and Settlement Negotiations – Settling disputes outside of court through mediation can lead to a more favorable and cost-effective resolution.

Options for Dividing a Business in Divorce

Once a business is deemed marital property, there are typically three primary ways it can be divided:

  • One Spouse Buys Out the Other – The business owner may buy out the other spouse’s share, often using other marital assets or structured payments.

  • Co-Ownership Agreement – In rare cases, ex-spouses may agree to continue running the business together post-divorce.

  • Selling the Business and Splitting the Proceeds – If neither spouse wants to keep the business, selling and dividing the profits may be the best option.

Regardless of the approach, seeking legal guidance from Blackley & Wingad, Attorneys at Law can help you negotiate a solution that best protects your financial future.

Why You Need a Skilled Utah Divorce Attorney

Dividing a business in a Utah divorce requires expert legal representation to ensure your livelihood is protected. Blackley & Wingad, Attorneys at Law has a team of experienced trial attorneys who will fight for your interests. Our attorneys understand the nuances of Utah family law and have extensive experience handling complex asset division cases.

At Blackley & Wingad, Attorneys at Law, we prioritize our clients’ rights and work tirelessly to achieve fair outcomes. Our legal team is prepared to go to court to ensure your business and financial future remain secure.

Contact Blackley & Wingad, Attorneys at Law Today

If you are facing a divorce and need help protecting your business, contact Blackley & Wingad, Attorneys at Law today at +1 801-278-3700. We will provide the dedicated legal representation you need to navigate this complex process.

Blackley & Wingad, Attorneys at Law is a firm of experienced trial attorneys committed to getting you your day in court. Browse this page to learn about our reputation—and our client promise. Call +1 801-278-3700 today to schedule a consultation and take the first step toward securing your future.

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