The Unique Challenge of Divorce for Business Owners

For many families, a business is more than just a source of income, it’s a legacy, a career, and a major financial asset. In Washington, which follows community property rules, a business started (or possibly even grown) during marriage may be subject to division in a divorce. This can create high stakes for both spouses, especially if the company is the primary source of family income or a significant asset.

Is the Business Community or Separate Property?

The divorce court maintains significant discretion to label, value, and divide community property which can create some complications in a divorce. The first step is to determine whether the business is:

• Separate property: Often presumed to have been acquired before marriage and maintained separately.
  
  
• Community property: Often presumed to have been acquired during or potentially significantly expanded during the marriage.
  
  
• Mixed property: A blend of both, where separate property contributions have been commingled with marital assets.

Even if the business was started before or using separate property only, the Court has the final say as to division of assets.

Valuing the Business

Business valuation is often one of the most contested parts of divorce for entrepreneurs. Courts may use:

• Income approach: Looking at the business’s earning potential.
  
  
• Asset approach: Measuring tangible and intangible assets.
  
  
• Market approach: Comparing to similar businesses in the market.

Independent financial experts are commonly brought in to determine a fair value.

Protecting Operations During Divorce

Divorce can disrupt day-to-day business operations if disputes spill into management decisions. To keep things stable:

• Avoid drastic financial changes to the company during the divorce.
  
  
• Keep thorough, transparent business records.
  
  
• Consider temporary agreements with your spouse to protect operations.
  
  
• Use professional valuators and accountants to minimize disputes if needed.

Options for Division

Courts usually try to avoid splitting a business in half. Common outcomes include:

• One spouse keeps the business and compensates the other with cash or property.
  
  
• Selling the business and dividing the proceeds (less common if the business is thriving).
  
  
• Co-ownership arrangements (rare and often discouraged due to ongoing conflict).

Steps to Take Before Divorce

Business owners can reduce uncertainty by:

• Creating prenuptial or postnuptial agreements.
  
  
• Maintaining clear records separating personal and business finances.
  
  
• Paying themselves a reasonable salary rather than reinvesting all income.

Legal Guidance for Business Owners

If you’re a business owner facing divorce in Washington, protecting your livelihood requires skilled legal and financial strategy. At Magnuson Lowell, P.S., we regularly represent business owners and their spouses in complex divorces involving companies of all sizes.

We offer free telephone case evaluations - 425-800-0573. Contact us today to learn how we can help you safeguard your business and move forward with confidence.

In most divorce and parenting cases, the legal process takes time. Filing a Motion for a parenting schedule or financial support can take anywhere from a couple weeks to a couple months. But sometimes urgent issues arise that cannot wait weeks or months for a hearing. An emergency motion is a request asking the court to act quickly to protect a child or preserve a party’s rights.

Emergency motions are not routine, they’re reserved for situations where immediate action is necessary, and the Court won’t agree to accept an emergency order where no immediate need exists.

When Can You File an Emergency Motion?

A few examples where Courts may grant emergency relief in family law cases may include:

• Domestic violence or abuse
  
  
• Serious safety risks to a child
  
  
• A parent threatening to flee with the child
  
  
• Urgent financial matters, such as preventing the sale or hiding of marital assets
  
  
• Violations of existing court orders that create immediate harm

Each county has its own rules, but judges generally require specific facts and supporting evidence before granting emergency relief.

What Can the Court Do in Response?

Depending on the circumstances, the Court may issue:

• Temporary Restraining Orders (TROs) to prevent one party from taking
  
  
• Protection Orders, such as a Domestic Violence Protection Order (DVPO), providing immediate safety measures.

These orders are usually temporary until a full hearing can be held, often within a couple of weeks.

What You Need to File an Emergency Motion

If you are considering filing an emergency motion, you’ll often need to prepare:

• A sworn declaration explaining the urgent circumstances
  
  
• Supporting documentation, such as police reports, medical records, or text messages
  
  
• A proposed order for the judge to review

Because courts are cautious about granting emergency relief, it’s important to present clear, credible evidence.

When an Emergency Motion Isn’t Appropriate

Not every dispute qualifies as an emergency. For example, disagreements about weekend parenting time or routine expenses are not emergencies, even if they feel urgent to you. Filing unnecessarily may harm your credibility with the court.

Work with an Experienced Attorney

If you believe your situation requires immediate legal action, consulting with a family law attorney is the best first step. At Magnuson Lowell, P.S., we help clients evaluate whether an emergency motion is appropriate and prepare strong evidence to support their case.

We offer free telephone case evaluations - 425-800-0572. Contact us right away if you believe your family law matter requires urgent court intervention.

Divorce mediation can be one of the most effective ways to resolve disputes without the time, cost, and stress of trial. But to get the most out of the process, preparation matters. Below is a checklist of do’s and don’ts to help you approach mediation with the right mindset and strategy.

Do’s

Do gather your financial documents.
Your attorney will likely request organized records of income, expenses, assets, and debts. The mediator and your spouse will need accurate numbers to work from.

Do think about your priorities.
Decide what matters most to you (custody schedule, keeping the house, retirement accounts, etc.) and what you are willing to compromise on.

Do stay calm and respectful.
Mediation is about finding solutions. Remaining courteous helps keep discussions productive and shows the mediator you are focused on resolution, not conflict.

Do listen carefully.
Even if you disagree, pay attention to your spouse’s perspective. Understanding their concerns can open the door to creative compromises.

Do consult with your attorney.
Your mediator cannot give you legal advice. Talk with your lawyer before and during mediation to make sure your rights are protected, and you understand the agreements being discussed.

Do be honest.
Hiding information or exaggerating positions will only stall progress and may damage your credibility if the case later goes to court.

Don’ts

Don’t come unprepared.
Showing up without the right financial information or an idea of your goals will waste time and money.

Don’t make mediation a battleground.
This isn’t about “winning” every issue. Approaching mediation like a trial can cause the process to break down.

Don’t dig in your heels on every point.
Flexibility is the key to settlement. If you refuse to budge, mediation is unlikely to succeed.

Don’t ignore the mediator.
The mediator is a neutral professional trained to help you find middle ground. Respect their process and opinions, even if it feels slow at times.

Don’t sign anything you don’t understand.
Always review agreements carefully and, if possible, with your attorney before finalizing.

Mediation can help separating couples save time, money, and emotional energy compared to contested litigation and trial. By following your attorney’s advice, being prepared, and remaining courteous, you’ll set yourself up for a smoother, more productive mediation session and a stronger chance of resolving your divorce fairly. Call the law offices of Magnuson Lowell PS 425-800-0572 today for a free case evaluation.