What Happens To Your Business In A High-Net-Worth Divorce In Maryland?

If you own a business and are facing divorce in Maryland, I understand how stressful and uncertain things can feel. For many high-net-worth individuals, their business is not just a financial asset—it’s a personal achievement built over years of effort and sacrifice. When divorce enters the picture, protecting that business becomes one of the most critical issues. I work with business owners across Maryland to help them understand how divorce may affect their business and what steps they can take to protect it.

Maryland is an equitable distribution state. That means marital property is divided fairly, but not always equally, under Maryland Code, Family Law § 8-205. If your business—or any part of it—is considered marital property, it may be subject to division by the court. Whether your spouse worked in the business or not, the court may still assign them a portion of its value depending on when and how the business was started, operated, and financed.

Determining Whether Your Business Is Marital Or Separate Property

The first question we look at is whether the business is considered marital property. If the business was started during the marriage, it is almost always considered marital property. But even if you started the business before the marriage, any increase in its value during the marriage may be subject to division if marital efforts or funds contributed to its growth.

For example, if your spouse supported the business financially or helped manage it, even indirectly, the court may decide that your spouse is entitled to a portion of its appreciated value. Maryland courts look at how the business evolved, who contributed to its success, and whether it was treated as a joint asset.

Business Valuation In A Maryland Divorce

One of the most complex parts of dividing a business in divorce is assigning it a fair market value. I often work with forensic accountants and valuation experts to ensure that the business is appraised accurately. Maryland law does not require a specific method of valuation, but courts often rely on fair market value, income-based valuation, or asset-based valuation depending on the nature of the business.

It’s important that the valuation reflects current performance, potential future income, and any unique circumstances that could affect its marketability. Hidden income, unreported profits, or commingling of business and personal finances can complicate the valuation process. That’s why it’s critical to gather clear, organized business records early in the case.

How The Court May Handle The Division Of A Business

Once the business is valued, the court may choose to do one of the following:

• Award the Business To One Spouse – The court may award the entire business to one party and require them to buy out the other spouse’s share, either through cash or by offsetting other assets in the property division.
• Order The Sale Of The Business – In rare cases, especially if both parties are deeply involved in running the business and can’t reach an agreement, the court may order the business to be sold and the proceeds divided.
• Co-Ownership – While less common, some spouses agree to continue co-owning the business post-divorce. This requires a high level of trust and cooperation.

Maryland courts generally prefer not to disrupt a functioning business, especially if one spouse was primarily responsible for its operation. I always work to help my clients keep their business intact while reaching a fair resolution.

Protecting Your Business Interests During Divorce

If you’re considering divorce or have already filed, there are steps you can take now to protect your business:

• Keep Clear Financial Records – Maintain separate accounts for your business and personal finances. Mixing funds can weaken your argument that part of the business is separate property.
• Avoid Overpaying Yourself or Others – Inflated salaries or underreported income can affect how your business is valued.
• Limit Your Spouse’s Involvement – If your spouse works in the business, reducing their role, while remaining fair, can help preserve control during litigation.
• Consider A Buyout Agreement – If possible, negotiate a settlement where you retain full ownership in exchange for other assets.

I work closely with clients to develop these strategies early in the process so they can maintain stability and control while their case is pending.

High-Net-Worth Divorce Frequently Asked Questions

Is My Business Considered Marital Property In A Maryland Divorce?

If the business was started or acquired during the marriage, it will likely be considered marital property. Even if the business was started before the marriage, any appreciation in value during the marriage could be subject to division if it was supported by marital efforts or funds. The court will examine when the business was formed, how it was managed, and who contributed to its growth.

How Is A Business Valued In A Divorce Case?

There are several methods used to value a business, including fair market value, income-based valuation, and asset-based valuation. Maryland courts do not require one method over another, so we often use expert business appraisers to conduct a detailed analysis. The goal is to arrive at a value that reflects the true worth of the business based on income, assets, debts, and market trends.

Can I Keep My Business After The Divorce?

In most cases, yes. Courts generally try to avoid breaking up an operating business. You may be required to compensate your spouse for their share, either by paying them a lump sum or offsetting other assets. If you’re the primary operator of the business, the court is more likely to award it to you while ensuring a fair division of its value.

What If My Spouse Never Worked In The Business?

Even if your spouse wasn’t involved in day-to-day operations, they may still be entitled to part of the business if it was started during the marriage or if marital resources supported it. Their contribution to the marriage as a whole, including indirect support, may still be considered by the court.

Can My Spouse Force Me To Sell The Business?

That outcome is rare. Maryland courts prefer to keep a business with the spouse who operates it. A forced sale may happen only if neither party can afford a buyout, and co-ownership isn’t feasible. Most of the time, we help negotiate a fair resolution that keeps the business running under your control.

Schedule A Confidential Consultation With Our Maryland Divorce Attorney

If you’re a business owner going through a high-net-worth divorce, your business and financial future are on the line. At The Law Offices of Sandra Guzman, we protect business owners and high-asset individuals through every stage of the divorce process with thoughtful planning and strong legal representation.

To schedule a consultation, contact our Maryland divorce lawyer at The Law Office of Sandra Guzman-Salvado by calling (301) 340-1911. We serve clients from our offices in Rockville, Greenbelt, Bethesda, and Frederick, as well as throughout the state of Maryland.