Divorce is difficult enough without the added stress of dividing a business. In Utah, a company owned by one spouse is usually considered a marital asset and is subject to equitable division. Typically the value of the spouse’s ownership interest is divided 50/50, but the way it is split can vary. An accurate valuation helps ensure fairness and prevents disputes.
Why a valuation is essential
- Fair market value matters. Courts and mediators generally use fair market value—the price a willing buyer would pay—to divide a business. Couples often hire a professional appraiser to establish this number. A thorough appraisal also highlights goodwill (intangible reputation) and clarifies whether the goodwill is tied to the business or to the working spouse.
- Protect against manipulation. Long divorces can strain operations or create incentives for a spouse to manipulate financial results. Peak Business Valuation notes that getting an appraisal early deters manipulation and lowers litigation risk.
- Clarify division options. After valuation, couples generally choose among four paths: one spouse buys out the other, both sell and split the proceeds, they co‑own the business, or one spouse keeps the business while the other receives assets of equal value.
How businesses are valued
A divorce valuation relies on similar methods used in traditional appraisals but focuses on equitable division:
- Market approach. Compares your company’s performance to similar businesses that recently sold. Market multiples provide an estimate of what buyers might pay.
- Income approach. Projects future earnings and discounts them to present value. This method is often used when revenue is predictable.
- Asset approach. Values tangible and intangible assets, subtracts liabilities, and may apply discounts for minority ownership or lack of marketability.
Tips for Utah business owners
- Keep clean books and records. Organized financials lend credibility and make valuations faster and less costly.
- Separate personal and business expenses. Co‑mingled funds complicate the appraisal and can undermine your position.
- Understand Utah’s marital property rules. Business interests acquired during marriage are typically marital property. Increases in value during marriage may also be marital property, even if ownership began before the marriage.
- Work with experienced professionals. Attorneys and CPAs familiar with Utah family law can help structure settlements and minimize taxes. Cooper Norman’s business transition planning team collaborates with legal counsel to provide defensible valuations and strategic advice.
Divorce doesn’t have to derail your business. With foresight and a clear valuation, you can protect your company while ensuring a fair settlement.
Let’s Move Forward — Together.
One conversation. One plan. One firm.
Behind every return, every review, every decision—one firm moves in unison.
Your CPA, advisor, and CFO share one rhythm, one relationship, one truth.
From tax season to transition, Cooper Norman makes progress feel inevitable.
Prefer to start small?
Download our “Business Transition Readiness Checklist” to see where you stand today.