Splitting a Business When You Separate: A Guide for Hervey Bay, Bundaberg and Maryborough Owners

From fishing charters and tourism operators in Hervey Bay, to agricultural and processing businesses around Bundaberg, to trades and manufacturing in Maryborough, small business ownership is woven through this region’s economy, and often through its marriages and relationships too. When a couple who own a business together separates, or when one partner has built a business during the relationship, working out what happens to it is one of the most complex parts of a property settlement.

The business is an asset, not a bystander

Under the Family Law Act 1975, a business, an interest in one, is treated as property, just like the family home or superannuation. 

It doesn’t matter whether the business is a sole trader operation, a partnership, or run through a company or trust structure, and it doesn’t matter whose name is on the paperwork. If either party has an effective interest in or control over the business, it is likely that the business will form part of the property pool that gets divided. 

This surprises some business owners, particularly where one partner built the business largely on their own, or where it existed before the relationship began. Prior ownership and sole effort are relevant factors the court considers when assessing contributions, but they don’t automatically remove the business from the settlement.

Why business settlements are harder than most

Unlike a house or a bank account, a business doesn’t have an obvious market value sitting on a title search. Settling a business interest usually involves:

• Valuation: typically, completed by a forensic accountant or business valuer, who assesses the business’s worth based on its income, assets, goodwill, and future earning capacity;
• Structure: untangling how the business sits across companies, trusts, or partnerships, and identifying who genuinely controls it versus who simply holds a formal role;
• Contribution: weighing up financial contributions (capital, wages foregone, unpaid labour) against non-financial contributions like running the household while the other partner built the business, which is taken into account in the determining the overall division of the asset pool;
• Ongoing viability: deciding whether the business can realistically be split, sold, or retained by one partner while compensating the other through different assets. This is an important step to remember. Just because the business is included in the asset pool for division, it does not exclude one party retaining the business into the future. 

Keeping the business running while you sort things out

For many local business owners, the biggest practical concern isn’t the eventual split. Rather, it’s keeping the business, and its staff, customers, and cash flow, stable while a settlement is worked through. 

Courts recognise this and generally prefer outcomes that avoid forcing a sale or winding up a viable business where there’s a fairer alternative, such as one partner retaining the business and offsetting its value against other assets in the pool, or a structured buy-out over time.

Protecting a business before separation happens

If you’re going into a relationship already running a business or building one during a relationship with a new or blended family, a binding financial agreement can set out in advance how the business would be treated if things end. This is particularly relevant for family businesses that involve extended family members as shareholders, directors, or employees, which is common across farming and trade businesses in this region.

Getting the valuation and structure right from the start

Business settlements go wrong most often when the value or structure of the business isn’t properly understood before negotiations begin. Getting early advice – and, where needed, an independent valuation – puts you in a much stronger position, whether you’re trying to keep the business, negotiate a fair buy-out, or simply understand what you’re entitled to.

If you’re separating and a business is part of your shared property, our team can help you understand how the law applies to your specific structure and guide you toward an outcome that protects both your financial position and the business itself.