It’s a logical question many successful business owners ask: “I built this company before I ever said ‘I do.’ That means it’s mine and not part of the divorce, right?” On the surface, the answer seems simple. In Ohio, assets you owned prior to your marriage are considered your "separate property."

Legally, your separate property is yours to keep and is not subject to division in a divorce. This sounds like great news, and it often is. However, a business is not a static object like a piece of gold your uncle gifted you in college. It’s a living, breathing entity that changes over time, and the actions you took during your marriage can significantly complicate the legal distinction between "separate" and "marital."

The two most common ways a pre-marital business can become entangled with marital assets are:

1. **Commingling of Funds:** This happens when marital money is mixed with separate business assets. Did you use a joint checking account to pay business expenses? Did you invest your salary (which is marital income) back into the company to fund an expansion? When you blend marital and separate funds, it can become difficult to tell where one ends and the other begins, potentially converting a portion of your separate business into marital property.

2. **Appreciation from Marital Efforts:** This is the most critical concept for business owners to understand. If your business grew significantly in value *during* the marriage, your spouse’s attorney will likely argue that the growth was a result of your direct labor and efforts (which are considered marital contributions). They may also argue that your spouse contributed indirectly by managing the household, raising children, and creating the stability that allowed you to focus on the business. This may increase in value—the appreciation—can be considered a marital asset subject to division.

Protecting your pre-marital business requires a clear, strategic effort to trace assets, document the flow of funds, and demonstrate which portion of the business’s value remains your separate property. This is a complex financial analysis that requires an experienced legal team.

Understanding the basics is the first step, but protecting your life's work requires a detailed strategy. To learn the 5 critical mistakes business owners make during a divorce and how to avoid them, download our free guide: **The Executive's Playbook: How to Protect Your Business and Your Wealth in an Ohio Divorce.**