Lawyer Explains: Business Founded Before Marriage Grows During It – Is Appreciation Divided?

In divorce proceedings, discussions often center on dividing assets like homes, cars, savings, or loans. However, a more complex issue frequently arises: how to divide a business.

This complexity intensifies when one spouse founded a company before the marriage, but it experienced substantial growth, generated higher income, acquired assets, built a client base, or became a significant financial pillar for the family during the marriage. The core question then becomes whether this business remains solely the personal property of the founding spouse, or if its increased value should be subject to division upon divorce.

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In divorce proceedings, discussions often center on dividing assets like homes, cars, savings, or loans. However, a more complex issue frequently arises: how to divide a business.

Eglė Šiugždinė, a board member of the Lithuanian Young Lawyers Association and a lawyer's assistant and mediator, addresses this intricate legal question. Her insights aim to clarify the division of business assets in marital dissolutions, particularly when a company's growth is intertwined with the duration of the marriage.

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The core question then becomes whether this business remains solely the personal property of the founding spouse, or if its increased value should be subject to division upon divorce.