A business is not an ordinary asset—it has an intrinsic value, a liquidity value, and a going-concern value, which rarely coincide. Unlike a bank deposit or real estate, an ownership interest in a business cannot be easily divided without affecting the business itself. An ill-considered division of marital property can therefore jeopardize not only the interests of the spouses but also jobs, business relationships, and the value of the business itself.

Furthermore, a business’s financial structure has often evolved in complex ways—over the course of years, through capital increases, restructurings, co-founders, or intra-family transfers. If one starts to assess these structures upon filing for divorce only, valuable time is lost. We therefore recommend conducting a structured analysis of the business’s assets at an early stage, if a divorce is foreseeable—regardless of which side of the dispute our clients are on.

Our approach combines family law and business perspectives. With experience as legal counsel in a multinational corporation, we understand how corporate structures, governance, and liquidity planning actually function—not just how they appear on a balance sheet. This dual perspective informs every consultation we conduct regarding divorces involving business interests.

The first question usually is: does the business constitute a spouse’s separate property or is it marital property? If the business was founded or acquired before the marriage, its original assets generally remain separate property and are therefore excluded from the division of marital property. However, the revenues generated and reinvested during the marriage may be considered marital property and are therefore generally subject to equalization—a distinction that, in practice, is often one of the most challenging issues in the division of assets.

If, on the other hand, the business was finances with assets acquired during the marriage, it generally constitutes marital property in its entirety, regardless of who was actively involved in its operations. Gifts of company shares—such as those made as part of an intra-family succession—are generally separate property, a fact that must be carefully documented, particularly in the case of family-run businesses.

This classification is not a foregone conclusion. Capital increases funded by marital property, the commingling of private and business assets over the years, or a change in legal structure can alter the original classification. We therefore carefully reconstruct the history of the ownership interest before taking a position on its classification under matrimonial property law.

When business assets are involved, there is an increased risk that assets will be transferred, restructured, or concealed prior to the division of marital property. This can occur through capital reductions, extraordinary profit distributions, the transfer of shares to related third parties, or the shifting of assets into foreign structures. In cases where a divorce is coming up, we assess at an early stage whether such measures are imminent and, if necessary, file motions to secure assets—such as requests for access to corporate records or for the precautionary freezing of assets.

We secure evidence at an early stage and apply for the necessary precautionary measures to ensure that the subsequent division of assets is not undermined by a newly created reality. In the case of international assets, the additional question arises as to how such safeguards can be enforced abroad; for more information on this, please refer to our in-depth resource page on the global search for and freezing of assets.

The most effective protection for a business is not established during divorce proceedings, but before they begin. A carefully drafted prenuptial agreement can specify that business interests remain separate property in perpetuity, how increases in value are to be treated, and which valuation method applies in the event of a divorce—thereby avoiding costly valuation disputes down the line from the outset. We draft such agreements both before marriage and retroactively during an existing marriage, to the extent permitted by law.

If a prenuptial agreement already exists, we carefully review its validity and scope before marital property is split—in particular, whether it was properly executed and whether it also covers current corporate structures that may not have existed at the time the agreement was signed. For co-founders and in cases where multiple family members hold equity interests, we also recommend aligning the prenuptial agreement with shareholder agreements and articles of incorporation to ensure that there are no conflicts between family law and corporate law.

Even a correctly calculated equalization claim is of little use if it jeopardizes the company’s liquidity. A company that is forced to distribute large sums of money or sell shares on short notice to satisfy a matrimonial claim may itself end up in financial distress. This ultimately does not serve the interests of the person entitled to the equalization payment if their own economic stake in the company decreases as a result. We therefore explore alternative arrangements at an early stage: installment payments over a realistic period, interest on outstanding amounts, the transfer of other assets in lieu of a cash payment, or a combination of these approaches.

To clarify: occupational pension plans are not included in the business valuation; rather, they are settled separately and according to their own rules. Anyone preparing a liquidity plan must therefore consider these two items separately. When developing viable payment models, we work closely with specialized financial planners to ensure that the settlement remains economically feasible for both parties.

Ongoing divorce proceedings must not paralyze the management of the company. If both spouses are involved in management or serve on the board of directors, the question arises as to how operational decisions will be made during the proceedings without one party unduly restricting the other’s voting rights or, conversely, the proceedings blocking the company’s ability to act. We develop pragmatic interim solutions for this—such as temporary voting agreements or the involvement of a neutral third party for certain decisions.

Equally important is maintaining discretion toward employees, business partners, and investors. A public divorce dispute can undermine confidence in the company’s leadership; we therefore consistently ensure that negotiations and procedural steps are conducted in such a way that internal and external stakeholders are involved as little as possible. Should one party attempt to intimidate the other through internal company channels or unduly pressure them into agreeing to unfavourable acts, we act immediately.

The following anonymized case studies illustrate typical scenarios from our practice. They cannot replace an individual consultation.

Case ccenario 1 – Marriage of two co-founders with joint operational activities. Both spouses have built a business together during their marriage and are both actively involved in its operations. In addition to the division of marital property, the focus here is on governance: how will management continue during and after the proceedings if both spouses retain an interest in the company or if one party is to exit the business?

Case scenario 2 – International holding structure with investments in multiple countries. An entrepreneurial couple holds investments through a holding company with subsidiaries in Switzerland and abroad. Here, we determine which law applies to which level of the structure. We work with our international network to ensure full disclosure of the financial circumstances, and collaborate with tax advisors to develop a settlement solution that does not trigger any undesirable tax consequences in any of the affected countries.

In our practice, certain mistakes keep recurring in divorce cases involving business interests:

• Failure to conduct an early assessment. If one waits until a divorce petition is filed to begin understanding the business structure, valuable time is lost and their negotiating position is weakened.
• Mixing business valuation with pension rights equalization. Both matters follow their own rules and should not be combined in a single calculation.
• Dividends or restructurings shortly before filing. Such measures regularly raise suspicions of asset shifting and can significantly weaken one’s negotiating position.
• Neglecting governance issues. If the issue of management is not addressed early on during the proceedings, deadlocks may arise that harm the company and, ultimately, both spouses.
• Cash payments without liquidity planning. An ill-considered commitment to an immediate capital payment can plunge the company into a liquidity crisis.
• Lack of coordination with tax advisors. A solution that makes sense under matrimonial property law can become unnecessarily costly from a tax perspective if it is not coordinated with specialized tax advisors from the outset.

We support our clients from the very beginning to mitigate the most common mistakes.

In any divorce involving a significant business interest, it is advisable to seek legal advice at an early stage —especially if the matrimonial property classification of the business is unclear, if holding structures or trusts are involved, if both spouses are actively involved in the business’s operations, if there is a risk of asset transfers, or if the business’s liquidity could be jeopardized by a settlement.

Why our approach to divorces involving business interests: based in Geneva and licensed to practice law in both Geneva and New York, we combine family law expertise with an in-depth understanding of corporate structures—shaped in part by our prior experience as legal counsel at a multinational corporation. We are not an anonymous firm with rotating case managers: our clients work with the same point of contact throughout the entire process. Recognized by Chambers in the field of family law and as a member of the International Academy of Family Lawyers (IAFL), we work closely with specialized valuation experts, wealth planners, and tax advisors from our network spanning more than 80 countries.

If your case differs from these scenarios: this guide covers the typical scenarios involving a divorce where business interests are at stake. However, every business asset situation has its own unique characteristics—such as particularly complex holding structures, trusts, or a third jurisdiction. Describe your situation to us confidentially, and we will outline the next steps that are right for you.

Based in Geneva, with licenses to practice law in Geneva and New York, as well as a doctorate in law from Germany, we combine experience in family law with an in-depth understanding of corporate structures—shaped in part by our previous work as legal counsel at a multinational corporation. We are not an anonymous large law firm with a rotating staff of case managers: Our clients work with the same point of contact throughout the entire process. Recognized by Chambers in the field of family law and as members of the International Academy of Family Lawyers (IAFL), we work closely with specialized valuation experts, wealth planners, and tax advisors from our network spanning more than 80 countries.

If your case differs from these scenarios: This guide covers the typical scenarios involving a divorce with business interests. However, every business asset situation has its own unique characteristics—such as particularly complex holding structures and trusts, or the involvement of a third jurisdiction. Describe your situation to us confidentially, and we’ll outline the next steps that are right for you.