For many Lexington entrepreneurs, the business is more than income — it’s identity, stability, and years of work.
So the question is natural: Can my spouse take half?
The answer is: your business may be divided, but not always equally.
It depends on whether the business is considered marital property, how it was funded, and what’s fair under South Carolina’s equitable distribution laws.
Is Your Business Marital or Non-Marital?
Before anything is divided, the court decides whether the business — or part of it — is marital property.
You may have marital interest if:
- The business was started during the marriage
- Marital funds were used to grow or sustain it
- Your spouse worked in or contributed to the business
- The business increased in value during the marriage
It may be non-marital if:
- You owned it before the marriage
- You inherited or received the business as a personal gift
- You strictly kept finances separate and did not use marital funds
Even if it started as non-marital, any increase in value during the marriage may still be divided.
How Lexington Courts Value a Business
Before dividing anything, the business must be valued, typically using one of three methods:
- Income approach – based on profits/earnings
- Asset approach – based on equipment, inventory, property
- Market approach – what similar businesses would sell for
Courts often rely on CPAs, business appraisers, and financial experts.
This step is critical, because the value determines what’s on the table.
How Courts Divide Business Interests
South Carolina uses equitable distribution, meaning fair, not automatic 50/50.
Possible outcomes include:
🔹 You keep the business, but give your spouse other assets
Common for small or sole-owner operations.
You might retain the business and offset your spouse with:
- Home equity
- Vehicles
- Retirement funds
- Cash buyout
🔹 You keep the business and pay a structured buyout
Payments may be spread out over time to avoid financial strain.
🔹 Selling the business
Rare unless neither spouse wants to continue or the business cannot be divided any other way.
🔹 Your spouse receives a minority share
More common in larger companies, partnerships, or LLCs — but judges avoid arrangements that create daily conflict.
How to Protect Your Business During Divorce
You may be able to limit exposure by:
- Keeping clean financial records
- Avoiding mixing business and personal funds
- Showing your spouse did not contribute financially or operationally
- Obtaining a professional valuation early
- Negotiating a settlement before trial
A well-prepared case can prevent inflated valuations or unfair claims.
Quick FAQs
Can my spouse take half automatically?
No. South Carolina does not require equal division — only fair division.
If my spouse never worked in the business, can they still get part?
Possibly, if the business grew during the marriage or relied on marital resources.
Can I buy out my spouse’s share?
Yes. This is the most common solution in Lexington business-owner divorces.
Dividing a business in divorce is complex — and your financial future depends on doing it right.
Call The Farley Law Firm today to schedule a confidential consultation and protect what you’ve built here in Lexington.
Disclaimer
This information is for general education only and not legal advice. Scheule a consultation today to discuss your specific concerns.
