This is often the first and most terrifying question a business owner asks when facing a divorce. You’ve poured your life into building something from the ground up. The thought of it being dismantled or losing half of it isn't just a financial fear—it feels like a threat to your identity and your legacy. It’s normal to feel protective and overwhelmed by this uncertainty, but you don’t have to face it with guesswork.

The simple answer is: *it depends*. In Ohio, the law makes a distinction between "marital property" and "separate property."

• **Marital Property** is generally defined as any asset or debt acquired by either spouse during the marriage. This is what is subject to division.

• **Separate Property** includes assets acquired before the marriage, as well as inheritances or gifts made specifically to one spouse during the marriage. This is generally not subject to division.

So, if you started your business *during* your marriage, it is presumed to be a marital asset. If you started it *before* your marriage, it is presumed to be your separate property.

However, the analysis rarely stops there. The complexity arises when separate property becomes entangled with marital assets. For instance:

• * **Commingling:** Did you use marital funds (money earned during the marriage) to invest in or pay expenses for your pre-existing business?

• * **Appreciation:** Did the value of your separate business increase during the marriage due to your labor or your spouse’s contributions (even indirect ones, like managing some of the books once per month)?

If the answer to questions like these is “yes”, a portion of your business value may now be considered marital property, which a court must divide equally or equitably. The key is determining *what portion* is marital and what remains separate. This requires a sophisticated legal and financial strategy involving careful documentation and expert witness analysis. It is not something to leave to chance.

If this scenario describes your situation, you should consider legal counsel in your divorce that has experience with local financial experts that can help with this situation and counsel with experience both negotiating and trying cases like this. The pitfalls are many in complicated asset scenarios - so make sure you are giving yourself the best chance at a successful outcome.

Understanding the basics from articles like this 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.