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Practice area · Toronto & Oakville

Divorce for Business Owners

What will happen to my business in a divorce?

Owning a business or being self employed is rewarding, but can add complexity to a couple’s financial situation. It’s important to that any self employed income or businesses are valued professionally and that other factors, such as tax or operating consequences are fully considered when negotiating a settlement.

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How we work with you

A structured, proven process with open lines of communication from the first call to the final agreement.

  1. Free 15-minute call

    Tell us what's happening by phone or video, and find out how we can help.

  2. Initial consult

    A 60-minute meeting to go through the key facts, set your objectives and build a strategy.

  3. Case work

    We carry out the plan, drafting and negotiating, with regular updates as we go.

  4. Resolution

    A legally binding agreement or order, and a clear picture of life after settlement.

Business Owners & Self-Employed: frequently asked questions

Is my spouse entitled to a share of my business in a divorce?

Yes, a business is considered as part of the family assets, and as such is subject to the same rules as other assets, which must be divided evenly between the spouses. However, you can get a date of marriage deduction for the value of your business at the time that you got married. This value would be deducted from the amount that is split.

I’m in a common-law relationship, is my partner entitled to a share of my business?

No, in a common-law relationship assets, including businesses, are split based on ownership. However, the non-owning party could file a claim for a portion of the value if they made contributions to the business.

Does my spouse become a shareholder in my business after the divorce?

No, only the value of the business is split in a divorce, not the actual business itself.

I’m self-employed, how is my income and/or business valued?

In most situations, a certified business valuator is hired to determine self-employed income and business value for divorce purposes.

My spouse did not contribute to building my business, are they still entitled to a share of it?

Yes, a spouse's direct contribution to building the business or their capability to contribute to the business does not impact their financial right to a portion of the family assets, which includes any businesses owned by either spouse.

Lawyers who can help

Meet the full team
SK Portrait of Shelly Kalra

Shelly Kalra

Managing Partner
JK Portrait of Joanna Kucz

Joanna Kucz

Partner
AI Portrait of Ashley Iyathurai

Ashley Iyathurai

Associate Lawyer
RB Portrait of Rachel Bushuev

Rachel Bushuev

Associate Lawyer
EL Portrait of Emily LeRoux

Emily LeRoux

Associate Lawyer

Move on to the next stage in your life.

Book a free 15-minute consultation by phone or video with one of our family lawyers.

Book a free consultation or call 416-649-1339
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