WORCESTER 508-471-3018
Metro West 508-709-0024

Property division involving business may spark conflict

Divorce is one of the most difficult experiences a person may go through both emotionally and financially. However, if a divorcing spouse owns a business and has a business partner, this only complicates the divorce process. Here is a look at how businesses are handled when it comes to property division during divorce proceedings in Massachusetts.

Property division remains one of the most contentious aspects of divorce proceedings. This process requires the divorce court to determine which debts and assets are part of a couple's marital estate and which ones are separate property. Businesses oftentimes fall under the marital estate category, which means exes might be entitled to shares in them.

A divorce court may view a company as marital property if it was formed after a couple got married, particularly if the business owner's spouse played a role in operating the company. In this case, the owner's spouse may receive half of the business partner's stake in the venture. If the owner and his or her partner created the company before the owner got married, the family law court will probably still decide that the owner's spouse must receive half of the venture's appreciation in value.

The best way in which to protect a business venture during divorce is to create a prenuptial agreement prior to the wedding. This type of agreement explains how property division involving businesses and other assets should be addressed in the event that a couple gets divorced. However, if a couple in Massachusetts never created a prenuptial agreement, they can still pursue a mutually satisfactory divorce settlement through informal negotiations, thus avoiding further court intrusion.

No Comments

Leave a comment
Comment Information
Email Our Team

Contact Us Today To Learn More

The skilled attorneys at SederLaw stand ready to handle even your most difficult legal issues. Turn to us for skilled representation to help you accomplish your legal goals.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

An Impressive Track Record
Of Achievement In The Law


Worcester Office
339 Main Street
Suite 300
Burnside Building
Worcester, MA 01608

Phone: 508-709-0024
Phone: 508-471-3018
Fax: 508-831-0955
Map & Directions

Metro West Office
1900 West Park Drive
Suite 280
Westborough, MA 01581

Phone: 508-471-3018
Fax: 508-831-0955
Map & Directions