What Happens to Your Business During Separation? OneLegal Explains the Intersection of Family & Business Law in Ontario.

What Happens to Your Business During Separation? OneLegal Explains the Intersection of Family & Business Law in Ontario.

By OneLegal Professional Corporation

Separation is never easy—especially when a business is involved. If you're a business owner facing separation or divorce in Ontario, it's essential to understand how business assets are treated under the law and how to protect your financial future.

At OneLegal Professional Corporation, we specialize in both family law and business law, making us uniquely equipped to guide entrepreneurs, professionals, and business-owning couples through complex separations where businesses are on the line.

Separation and Business: What You Need to Know

When spouses separate, the division of property—including businesses—can become one of the most challenging aspects of the process. Even if only one spouse “ran the show,” the other may still be entitled to a portion of the business's value.

Under the Family Law Act, R.S.O. 1990, c. F.3, each spouse may have a financial interest in the other’s business, whether they were directly involved in the operations or not. This means that your business could be subject to valuation, division, or even restructuring—unless you take proactive legal steps to protect it.

Why Businesses Get Complicated During Divorce

Here are a few key factors that influence how businesses are treated during separation:

• Ownership: Who legally owns the business? Was it started before or during the marriage?

• Management Role: Did both spouses participate in running the business? Were there shareholders or partners involved?

• Financial Interests: Did the business grow significantly during the marriage? Were joint funds used to support it?

In some cases, like in the recent Yin v. Feng decision, courts upheld a separation agreement where the parties agreed to divide business accounts equally. This demonstrates how clear legal planning—including the use of separation agreements—can provide clarity and fairness when dividing business assets.

The Legal Tightrope: Balancing Family and Business Law

The reality is: you can't separate your personal and professional life when it comes to divorce—especially if you’re a business owner.

That's why OneLegal stands out. Our expertise goes beyond traditional family law—we understand the intricate financial, operational, and legal structures behind businesses. We’ve helped clients:

• Protect their business through comprehensive separation agreements

• Navigate shareholder and partnership issues

• Value and divide businesses equitably without disrupting operations

• Structure buyouts or future ownership arrangements that preserve the business's viability

We know the importance of keeping your business running—your livelihood depends on it. Our integrated approach ensures your interests are protected both personally and professionally.

How OneLegal Can Help

Whether you're a sole proprietor, a shareholder in a corporation, or a partner in a joint venture, we tailor our approach to match your unique business structure. At OneLegal, we:

✅ Combine deep family law experience with business legal acumen
✅ Help you negotiate or draft airtight separation agreements
✅ Protect your business while pursuing a fair outcome for both parties
✅ Offer compassionate, strategic, and efficient legal solutions

Conclusion: Secure Your Future With OneLegal

Separation doesn’t have to mean the end of your business. With the right legal guidance, you can preserve what you’ve built and move forward with confidence.

If you’re a business owner navigating separation, contact OneLegal Professional Corporation today. Let our dual expertise in family and business law be your greatest asset during this challenging time.

📞 Book a confidential consultation today to speak with one of our experienced family and business lawyers.