If you’re a business owner going through a divorce in Arizona, you’ve probably already asked yourself the toughest question: Will I lose part—or even all—of my business? This is a valid concern. After all, you’ve poured your time, money, and energy into building something from the ground up. The thought of losing control of it—or having it torn apart during a split—is overwhelming.

At Blake & Pulsifer, PLC, our Tempe divorce lawyers can help you protect your business and your assets during a divorce. We know that your company is important to you, and we’ll work to help you keep it safe throughout your divorce.

How Arizona Divorce Laws Affect Business Ownership

Arizona is a community property state under ARS § 25-211. That means, in general, anything earned or acquired during the marriage is considered joint property—even if only one spouse’s name is on the paperwork.

So what does that mean for your business?

Was the Business Started Before or During the Marriage?

This matters a lot.

  • If you started the business before the marriage, it might still be considered your separate property, but any growth in value or income from that business during the marriage could be seen as shared.
  • If the business was started during the marriage, it’s very likely community property, which means it may be subject to a 50/50 split—even if your spouse never stepped foot in the office.

Can My Spouse Take Half My Business?

Maybe—but not always.

It’s rare that a court will literally split the business in half. Instead, Arizona courts aim for what’s “equitable,” which often means one spouse keeps the business and compensates the other for their share through a cash buyout or offsetting assets like property or retirement accounts.

But before any of that happens, there needs to be a business valuation. This is a process that often involves intricate financial analysis and expert review.

How Is a Business Valued in a Divorce?

Business valuation is one of the most critical steps—and one of the most complex. Business valuation is complex and involves financial analysis. Courts may use income-based, asset-based, or market comparison methods. The choice of method depends on the business type and specific circumstances.

In general, the valuation could be based on several factors, including:

  • Current and projected income
  • Assets and debts
  • Market comparisons
  • Client lists, intellectual property, goodwill, and more

If your spouse disagrees with the value, they might hire their own expert, and suddenly you’re in a valuation dispute, which can get expensive and drag things out. This is where a skilled Tempe divorce attorney becomes essential. You need someone who knows how to protect your interests from day one.

What If My Spouse Didn’t Work in the Business?

Even if your spouse never worked a day in your company, their claim might still stand, especially if:

  • Your business income supported the family
  • Marital funds were used to invest in or grow the company
  • You paid yourself less to build the business’s value

Courts consider the indirect contributions of a spouse, like running the household or raising kids, as valid forms of support that may entitle them to a portion of the marital assets, including part of the business.

How Can I Protect My Company in a Divorce?

If you’re in the early stages of separation (or even thinking about it), you still have time to make smart, protective moves.

Here’s how you can start safeguarding your company:

Work With a Divorce Attorney Who Understands Business

This might be the most important step. Look for a divorce lawyer in Tempe, AZ who’s handled high-asset or business-involved divorces in Arizona—they’ll know the strategies and legal arguments that protect business owners.

Consider a Fair Settlement

Sometimes fighting over every detail can damage the business more than it’s worth. Your attorney can help you explore settlement options that allow you to retain control while compensating your spouse fairly. This often leads to faster, cleaner outcomes.

Get a Professional Valuation Early

Don’t wait for the court to assign someone. Hiring your own expert shows you’re being proactive and gives your attorney a strong foundation to argue from.

Watch What You Do With Money

Any unusual transfers, large bonuses, or hiding of income can backfire badly in court. Transparency matters. It also builds trust with the court that you’re acting in good faith.

Do Prenups or Postnups Help in Arizona?

Absolutely—if they’re done correctly.

A prenuptial agreement is signed before marriage and if done properly, it will clearly spell out what happens to a business in the event of divorce.

A postnuptial agreement (signed after marriage) can do the same, though it’s often looked at more critically by the court. Either one can make a massive difference in preserving your ownership rights.

Just remember: even with a prenup, you’ll still need to prove you’ve followed it, and that both parties signed it knowingly and fairly.

What If We Co-Own the Business?

If both you and your spouse are business partners, things can get complicated fast. You have a few options here:

  • One of you buys the other out
  • You sell the business and split the proceeds
  • You continue to co-own (though this rarely works out long-term unless your relationship is truly amicable)

Your attorney can help you weigh the financial and emotional costs of each option.

Contact Our Tempe Divorce Attorneys Today

Going through a divorce is hard enough. When your business is involved, the stakes feel even higher. You’re not just trying to untangle a marriage—you’re trying to protect your livelihood, your team, your future.

We understand how heavy that feels.

Our Arizona divorce lawyers have helped business owners like you protect what they’ve built. Whether you’re just starting the process or already knee-deep in it, we can step in, guide you forward, and take some of that weight off your shoulders. Call Blake & Pulsifer today at 480-838-3000 or fill out our confidential contact form to get started.