How Are Business Assets Divided in a Nevada Divorce?

Divorce can jeopardize your company’s future, leaving many Nevada business owners concerned about the potential division of their professional legacy. If you are a business owner facing a divorce and wondering, “How are business assets divided in divorce?” you’re not alone. Navigating the complexities of business valuation and asset distribution can be overwhelming, but understanding the legal framework is the first step toward protecting your interests.

At Mills & Anderson, we recognize what is at stake. Our experienced Las Vegas, Nevada divorce lawyers are committed to helping business owners navigate the complex legal issues involved in divorce and working to ensure their business interests are protected. Contact us online or call (702) 386-0030 today to schedule a consultation. Let us help you secure your future.

Is My Business Community or Separate Property?

Nevada is a community property state. By law, assets acquired during marriage belong equally to both spouses, including business interests. The court may treat your business as community property, whether it is a shop, a practice, or corporate shares.

The law provides for the equitable distribution of community property. While the court typically aims for a roughly equal division, specific circumstances may justify an unequal division. These exceptions include situations in which one spouse wasted or dissipated community assets through reckless behavior, such as gambling or infidelity, or engaged in fraud or concealment by hiding or transferring assets. The court may also use unequal division to address significant economic disparities between spouses, taking into account factors such as earning capacity, health, and age. 

Nevada law protects separate property, including assets owned before marriage or received as a gift or inheritance. However, this protection may be lost if the assets become commingled with marital property. If marital funds were used to pay business debts or if significant marital effort increased the company’s value, the business may lose some of its separate property status.

How To Value My Pre-Marital Business?

Divorce with business ownership established before marriage is complex. 

Nevada courts use two primary methods to determine which portion of growth belongs to the marital community:

• “Pereira” method. This method is applied when business growth is primarily due to the owner’s personal efforts. The court allocates a fair return on the original separate investment to the owner, while classifying the remaining growth as community property.
• “Van Camp” method. The court uses this method when market trends or capital drive growth rather than labor. The court determines a fair salary for the owner’s work and subtracts community expenses, such as family bills, and any unpaid portion of that salary is considered community property.

Selecting the appropriate accounting method is a fact-specific determination that can significantly impact the final distribution of assets, making it vital to present a clear narrative of how your business grew during the marriage.

How To Determine What My Business Is Worth?

After identifying the community portion of your business, the next step is to determine its precise value. This stage of dividing a business in a divorce can be contentious; experts typically conduct a formal valuation using tax returns and profit-and-loss statements. Valuation includes both tangible and intangible assets.

What Are Tangible Assets?

Tangible assets are the physical items the company owns. 

Key tangible assets include:

• Real estate—land, office buildings, warehouses, or retail spaces owned by the entity;
• Equipment and machinery—manufacturing gear, office hardware (computers, printers), specialized tools, and company vehicles;
• Inventory—raw materials and finished goods held for sale; and
• Cash and accounts receivable—liquid assets and money owed to the business by its customers or clients.

These assets are typically straightforward to identify and value using market-based methods.

What Are Intangible Assets?

Experts must also value business assets in divorce that lack a physical form but drive significant revenue. 

Key intangibles include:

• Goodwill—represents the value of the business’s reputation; courts focus on enterprise goodwill rather than personal goodwill;
• Intellectual property—protected assets such as patents, copyrights, trademarks, and trade secrets; and
• Contracts and agreements—the inherent value in long-term customer contracts, favorable leases, or exclusive supplier agreements.

Intangible assets are often the most challenging to value, particularly in service-focused or highly specialized businesses.

What Is the Difference Between Enterprise and Personal Goodwill?

Goodwill is among the most challenging aspects of divorce and business ownership. It refers to the business’s reputation and client loyalty. 

Nevada courts distinguish between:

• Enterprise goodwill. This goodwill is the value associated with the business itself, including brand recognition, systems, and customer relationships that remain after the owner’s departure. Enterprise goodwill is considered a community asset and is subject to division.
• Personal goodwill. This is the value derived from the owner’s reputation or personal relationships and is generally considered separate property. It is common in professions such as medicine, dentistry, or law, where clients seek a specific individual. 

For example, if clients choose a company for its brand and team, this reflects enterprise goodwill. If they seek a specific surgeon for unique skills, this is personal goodwill. 

What Other Asset Division Options Do I Have? 

When navigating a divorce with a business, there are several practical approaches to asset division: 

• Buy-out. One spouse retains the business and pays the other spouse half the value of the business. This can be accomplished through a lump sum, periodic payments or allowing the other spouse to retain an equivalent share of other assets, such as the family home or retirement accounts.
• Selling the business. After the sale of the business, the spouses divide the proceeds.
• Co-ownership. The spouses remain business partners post-divorce. 

Each option requires careful consideration of your long-term financial goals and your business’s needs. 

How Can I Protect My  Business During a Divorce? 

What happens to your business during a divorce may seem out of your control. Still, there are proactive steps you can take that may significantly mitigate the risk to your company’s stability and long-term viability.

The following actions may help:

• ​Seek early legal advice. Consult a divorce lawyer as soon as you consider divorce.
• Obtain an independent business valuation. An expert can determine your business’s true value and help ensure a fair division.
• Maintain thorough documentation. Keep records of all business transactions, financial activities, and your contributions to the business’s success.
• Consider prenuptial or postnuptial agreements. These agreements can proactively address the division of business assets in divorce. 
• Explore mediation. Often less adversarial and more efficient than litigation, mediation allows both parties to work together toward a mutually beneficial solution.

Dividing business assets in divorce is complex and emotionally challenging. By understanding the law, working with experienced professionals, and taking proactive steps, you can navigate this process with greater confidence and pursue a favorable outcome.

Why Should I Work with Mills & Anderson? 

Navigating how business assets are divided in divorce in Nevada involves complex laws. Because courts aim for equitable distribution of marital assets, your company’s future depends on how your business interests are presented and protected.

At Mills & Anderson, we have the experience to handle divorces involving complex business interests. Managing partner Byron Mills has a background in business management and finance, which helps him to evaluate complex assets and identify potential financial inconsistencies. Managing partner Daniel Anderson offers extensive business litigation experience and has advised many small businesses in Las Vegas.

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We are committed to providing personalized, strategic representation to protect your business. When you work with Mills & Anderson, you benefit from a collaborative legal team and direct access to the professionals handling your case. If you are facing divorce and own a business, contact our firm online or call (702) 386-0030 to schedule a consultation and discuss practical strategies for protecting your company and your future.

Frequently Asked Questions

What Happens if I Started My Business Before I Got Married?

While a business established before marriage is generally classified as separate property, any appreciation in value that occurs during the marriage may be subject to division. 

How Is a Business Valued for Divorce Purposes?

Business valuation involves complex methodologies that often require the expertise of forensic accountants or business valuation specialists. They consider factors like the company’s financial records, cash flow, earnings, industry trends, comparable sales, and tangible/intangible assets.

Can My Spouse Force Me to Sell My Business in the Divorce?

No, your spouse cannot force you to sell your business if there are alternative solutions, such as one spouse buying out the other’s interest or offsetting the business value with other marital assets.

Do I need a Forensic Accountant for My Divorce?

If you have a business with significant assets, a forensic accountant may be essential. They can conduct a thorough financial investigation, accurately value the business, and serve as an expert witness if needed.

How Can I Protect My Business During a Divorce?

Seeking legal counsel early is critical to protecting your business in a divorce. Also consider a prenuptial or postnuptial agreement to specify how assets will be divided in the event of divorce. Maintain strong financial records, proper documentation, and avoid commingling personal and business funds.

Legal References Used to Inform This Page

To ensure the accuracy and clarity of this page, we referenced official legal and other resources during the content development process:

• Community property defined, Nev. Rev. Stat. § 123.220 (2025).
• Separate property of each spouse, Nev. Rev. Stat. § 123.130 (2005).
• Alimony, adjudication of property rights, and explanation of disposition, Nev. Rev. Stat. § 125.150(1)(b) (2025). 
• Hybarger v. Hybarger, 103 Nev. 255, 737 P.2d 889 (1987). 
• Pereira v. Pereira, 156 Cal. 1 (1909)
• ​​Van Camp v. Van Camp, 53 Cal. App. 17 (1921).

About the Author

Byron L. Mills is a partner and managing member of Mills & Anderson, a well-respected family law firm in Nevada. He has become well known in Clark County as a litigator in the local family courts.

A fifth generation native of Nevada, Byron Mills started working at his father’s law firm in 1987 as a runner before becoming a law clerk. Upon graduating law school in 1998, he joined the firm as an associate, then known as Lamond R. Mills & Associates, L.L.C.

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