The Oklahoma Bar Journal January 2026

I N DIVORCE LITIGATION, valuing the marital estate presents legal and financial complexities. This is particularly true in states like Oklahoma that follow the doctrine of equitable distribution, and the asset in dispute is a privately owned business. In such cases, a client who formed a business before marriage may assume that the business and its growth are their separate property and not subject to division. Alternatively, the nonowning client may believe that the business is marital property, based on the duration of the marriage, and should be divided equally. However, the outcome is often far from predictable.

circumstances, the key factors include but are not limited to 1) property classification, 3 2) valua tion date 4 and 3) goodwill value. 5 These factors provide a frame work for attorneys and the trial court, but no single formula exists. Added complexities – such as the spouses’ conduct, business agreements and/or inadequate documentation – further cloud the analysis. Against this backdrop, a growing challenge in Oklahoma divorce cases is ensuring that cli ents understand the complexities of business valuation. This under standing is critical to managing client expectations and achieving a fair division of the marital estate.

In contrast to community property jurisdictions, where marital assets are divided equally, Oklahoma courts divide marital property fairly, which is not nec essarily 50/50. 1 But how does the trial court decide who gets what? The trial court has broad discre tion in determining a business’s value, and the decision will not be disturbed on appeal unless it is clearly against the weight of the evidence. 2 Yet assigning value to a business is no easy task – the process requires a nuanced, fact-specific inquiry that must be conducted on a case-by-case basis. Although the trial court may consider the totality of the

PROPERTY CLASSIFICATION: MARITAL OR SEPARATE PROPERTY? The first step, and arguably the most crucial in business valuation, is asking whether the business and/ or an increase in business profits is separate or marital property. Oklahoma law presumes that property acquired during the marriage belongs to both spouses, and property acquired before the marriage belongs to only one spouse (the spouse who acquired the property before marriage). 6 When the property in dispute is a business, the court will consider when the business was formed, how the business was financed

Statements or opinions expressed in the Oklahoma Bar Journal are those of the authors and do not necessarily reflect those of the Oklahoma Bar Association, its officers, Board of Governors, Board of Editors or staff.

JANUARY 2026 | 25

THE OKLAHOMA BAR JOURNAL