How To Protect Your Business in a Nevada Divorce

Your Nevada business is more than just a source of income—it’s something you built with time, effort, and sacrifice. In many cases, it’s also your most valuable asset—worth more than your home, retirement, or savings combined.

Divorce can threaten all of that. Without the right protections, you could lose a share of your business—or even control of it.

Before divorce puts your company at risk, here are 5 key tips every Nevada business owner should know.

1. Understand How Community Property Laws Apply in Nevada

In Nevada, almost everything acquired during the marriage is considered community property. That includes businesses—even if only one spouse runs it.

If you started or grew a business while married, the value it gained during the marriage may be split 50/50 in a divorce. And even if you started it before the marriage, your spouse may still have a claim to a portion of its increased value.

This makes it especially important to keep your business and personal finances separate.

2. Separate Business and Personal Finances

If business and household money get tangled, it becomes harder to argue that the business is your separate property.

To help protect your business:

• Pay yourself a regular, fair salary.
• Avoid using business accounts for family or personal expenses.
• Keep clean records that show how the business was funded and operated.

If your spouse worked for the business—formally or informally—keep track of that, too. Their role could affect how the business is divided.

3. Get a Professional Business Valuation

Before dividing anything, you need to know what it’s worth. A proper valuation is critical.

Nevada courts rely on expert business appraisals to determine fair market value. This includes looking at the business’s income, assets, liabilities, and growth potential. Your spouse may hire their own expert, and the judge will consider both opinions or appoint a neutral third party if needed.

Make sure your valuation includes up-to-date financials and reflects current market conditions.

4. Use Prenuptial or Postnuptial Agreements to Protect Your Business

A prenuptial or postnuptial agreement can clearly spell out what happens to the business in a divorce. It can confirm the business is separate property and prevent your spouse from claiming a share of its future growth.

In Nevada, these agreements are enforceable if they are:

• In writing
• Signed voluntarily
• Made with full financial disclosure
• Not grossly unfair at the time of signing or enforcement

If you don’t have one in place, it’s not too late—a postnup signed during the marriage can still help clarify business ownership.

5. Negotiate a Buyout or Trade Other Assets

If your spouse is entitled to part of the business, it doesn’t mean you have to run it together after divorce. You may be able to buy out their share, either with cash or by trading other assets (like equity in the family home or retirement savings).

Just be careful—business value can be subjective, and emotions can cloud judgment. Work with legal and financial professionals to make sure any deal is fair and sustainable.

Bonus tip: Think Ahead, Not Just About Now

Even if divorce isn’t on the horizon, it’s smart to protect what you’re building. That includes:

• Keeping strong operating agreements for LLCs or partnerships
• Having clear succession plans
• Planning for what happens to your business in the event of divorce, disability, or death

Protect What You’ve Built

Protecting your business during a divorce requires a proactive and strategic approach. If you’re a Nevada business owner contemplating divorce or currently facing one, the experienced family law attorneys at Smith Legal Group are here to help.

We specialize in high-asset and business-owner divorces, and we understand what it takes to safeguard your hard-earned success.

Call us now at 702-410-5001 to schedule your free consultation and take the first step towards securing your business’s future.