Divorce for Business Owners, Executives, and Professionals in Washington State
Divorce involving a business, professional practice, or executive compensation package carries significant risk, and any misstep can be extremely costly.
Business owners and professionals face unique, high-stakes challenges during divorce, including determining accurate valuation, safeguarding confidential business information, and ensuring the continued viability of the enterprise post-marriage.
In Washington, community property laws govern business interests just like other assets. However, unlike simpler assets such as real estate or savings accounts, businesses and professional practices are complex to value and divide.
For business owners and professionals, divorce extends beyond the personal realm—it’s a critical financial and strategic event that can often become public. The decisions made during this time directly impact one’s livelihood, professional reputation, and the company’s future.
Our attorneys fully grasp the immense financial and emotional weight of dividing a business. We partner with clients to preserve what they have diligently built and achieve outcomes that honor their hard work, reputation, and future success.
-> If you would like to learn more about divorce in general, you can visit our page Divorce in Washington State
Business Ownership and Division in Divorce
What happens to my business if I get divorced?
If your business was started or grew during the marriage, part or all of it may be considered community property. The court can award the business to one spouse and compensate the other through assets or payments, or in rare cases, order a sale. Protecting your business requires accurate valuation and strategic negotiation.
Can my ex claim part of my business?
Yes. If the business was created, expanded, or financed with marital funds. However, that doesn’t mean your spouse becomes a co-owner. Courts often offset the value through other property or structured payments rather than dividing ownership.
How can I protect my business during divorce?
The key is documentation. Keep records showing ownership shares, founding dates, and funding sources.Pre- and postnuptial agreements, shareholder agreements, and buy-sell provisions can help prevent disruption. During the divorce, temporary court orders can limit access to company accounts and prevent interference.
Is it better to sell a business before or after a divorce?
Selling before divorce can simplify property division but it can also raise questions about timing, valuation, and intent. Selling afterward may allow for more accurate valuation but adds stress and potential dispute. The right timing depends on market conditions and your long-term goals.
Valuing Businesses, Partnerships, and Professional Practices
How are professional practices or partnerships valued in divorce?
Professional practices like medical, legal, accounting, or otherwise have some different methods for valuation. The main factors that are examined are the amount of property the business owns, the revenue it generates, and the profits. We will also look at things like how well the business could operate without you. Businesses that do not need the owner’s involvement tend to be worth more than business that depend on a single person to operate. We will also look at what is called goodwill which could be the value tied to the professional’s own skills or the reputation the business has in the community.
What happens to stock options, bonuses, or executive compensation?
Deferred compensation and stock options are complex assets that have a specific method for division and analysis. Much of it depends on the timing and conditions of vesting. You must work an experienced family law attorney to ensure these types of compensation are properly presented and valued for consideration.
How is professional licensure or pension treated in divorce for doctors, lawyers, or first responders?
Those have different considerations. Increase in skill and the licenses, degrees, or certificates that accompany it are not divisible property. That is they don’t have a value in and of themselves. But that will be a factor in considering financial support like alimony or child support. On the other hand, retirement and pension is property and can be addressed as part of the property division.
For further information about alimony, see our page Alimony and Spousal Support
For further information about child support, see our page Child custody and support
For further information about property division, see our page Property Division
Debt, Confidentiality, and Business Risk in Divorce
What happens to joint business debt after divorce?
Debts tied to the business are typically divided according to ownership and benefit. If both spouses guaranteed loans or credit lines, creditors can pursue either person unless accounts are refinanced. A strong property settlement should include indemnification clauses to protect you from future liability.
For further information about how debt is handled in a divorce, see our page Divorce and Debt.
How do confidentiality and non-compete clauses affect divorce settlements?
If your employment or partnership agreements contain confidentiality, trade secret, or non-compete clauses, those must be honored throughout the divorce. Your attorney can ensure sensitive documents are reviewed under protective orders or sealed filings. Divorce should never jeopardize your professional reputation or client relationships.
How Pacific Northwest Family Law Helps
For business owners and professionals, divorce is as much a financial restructuring as a legal process. We combine business valuation expertise with strategic case planning to protect your company, your reputation, and your future income.
Through our Strategic Case Plan, we work with valuation experts, accountants, and forensic analysts to ensure every dollar and every asset is accounted for — accurately and fairly.
Our goal isn’t to fight over what you’ve built, but to preserve it so you can keep building.
You may also be interested in learning more about the following
- To learn more about how property is characterized and divided, visit our page Property Division and Assets
- To learn more about the costs and divorce process, visit our page Divorce Costs and Process
Reviewed by Attorney Zachary C Ashby, Pacific Northwest Family Law, November 2025.