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The Divorce Encyclopedia
Closely Held Business


Term Definition Closely Held Business - a private company.
Application in Divorce A closely held business is a private company that may or may not be incorporated. Its ownership is not publicly traded.

Most single-proprietor, single-site businesses are closely held.

Valuing these businesses for divorce can be very difficult because very often they are the result of marital efforts and have separate and marital funds invested in them.

Very often the most value asset of a closely held business is the goodwill -- the expertise of the person running it.

See Closely Held Corporation; Corporation; Goodwill.

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