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What You Can Learn From Jeff Bezos’ Divorce If You Own a Business

By Nottage and Ward on February 18, 2025

When Jeff Bezos, founder of Amazon, finalized his divorce in 2019, it became one of the most expensive—and educational—separations in history. With a fortune exceeding $130 billion at the time, the stakes were astronomical.

While the case was settled without public litigation, it highlighted a key reality for entrepreneurs: business ownership doesn’t exist in a vacuum, especially in a divorce.

The Bezos divorce offers critical lessons in valuation, equity division, and future-proofing your company for business owners in Illinois, whether you’re scaling a tech startup, running a professional practice, or managing a family-owned enterprise.

At Nottage and Ward, LLP, our family law and divorce attorneys have helped guide countless entrepreneurs, executives, and professionals through high-net-worth divorces and can help you, too.

A Case Study in Founder Divorce Strategy

Jeff and MacKenzie Bezos were married for 25 years—long before Amazon became a household name. When they divorced, MacKenzie received 25% of their Amazon stock, which amounted to approximately $36 billion at the time. Remarkably, Jeff retained voting control over her shares, which allowed him to continue leading Amazon and maintain company stability.

While the couple’s split was amicable and strategic, it showcased the reality that business assets are marital assets unless otherwise protected. Even amicable divorces can significantly reshape a company’s future and ownership structure if not properly planned.

How Business Assets Are Treated in an Illinois Divorce

Illinois is an equitable distribution state, which means marital assets are divided fairly, not necessarily equally. This includes business interests, even if one spouse wasn’t directly involved in running or growing the company.

If you started or grew your business during the marriage—or even if the company increased significantly in value while you were married—it’s likely subject to division in a divorce.

Key Points to Remember Under Illinois Law

• Business ownership divorce cases involve evaluating the enterprise’s worth, not just current income.
• Appreciation in business value during the marriage can be marital property, even if ownership began before the marriage.
• If one spouse contributed indirectly (e.g., by supporting the home, caring for children, or helping build your network), they may have a claim to a share of the business.

If you want to protect business assets in an Illinois divorce, early planning and legal strategy are essential.

Lesson 1: Valuation Is Paramount

In the Bezos divorce, Amazon’s valuation was clear and publicly traded. But most business owners in Illinois don’t have that luxury.

If you’re privately held, your company’s value becomes a critical negotiation point—and one of the most disputed. That’s why a credible, independent business appraiser is essential.

Courts typically use one of three methods:

1. Asset-based valuation: Focuses on tangible assets minus liabilities.
2. Income-based valuation: Projects future earnings using past performance.
3. Market-based valuation: Compares your company to similar businesses recently sold.

At Nottage and Ward, LLP, we work with forensic accountants and valuation experts who understand how to fairly assess the worth of a company while protecting against overinflated claims by the opposing party.

Lesson 2: Equity Division Can Reshape Company Control

One of the most impactful decisions in the Bezos divorce was that Jeff retained voting rights despite giving up 25% of the Amazon stock. This prevented boardroom instability or unwanted influence on corporate governance. However, things are more complicated for private companies.

Without protective measures:

• A non-involved spouse may become a shareholder or gain control over company decisions.
• You may be forced to buy out your spouse, possibly requiring asset liquidation or financing.
• Disagreements may arise about the value of “sweat equity” or future potential.

That’s why a solid founder divorce strategy should include clear operating agreements, shareholder clauses, and/or buy-sell provisions that define what happens to business interests in the event of a divorce. These measures help prevent disruption and preserve control.

Lesson 3: Plan for Future Growth, Not Just Current Value

One mistake business owners make is only planning for what the business is worth today. In a high-growth business like Amazon in its early years, the future value may dwarf current earnings—and that future potential can be used in support negotiations.

Illinois courts may consider:

• Projected income streams
• Stock options and restricted shares
• Business goodwill and branding
• Upcoming mergers, acquisitions, or investments

How to Protect Business Assets in Divorce (Illinois Strategies)

Whether you’re married already or thinking about tying the knot, there are some actionable steps you can take to protect your business from being upended in a divorce.

Prenuptial or Postnuptial Agreements

Clearly define what happens to the business in the event of divorce, including valuation method, buyout terms, and classification of future earnings. Courts in Illinois generally enforce these agreements if they are voluntarily signed and fair at the time of execution.

Keep Personal and Business Finances Separate

Don’t use marital funds to invest in or grow your business without clear documentation. Commingling finances makes it easier for the court to classify the business as marital property.

Set Up Ownership Agreements

If you have co-founders or shareholders, include divorce-related buyout clauses that allow you to purchase your spouse’s share (if awarded) at a predetermined or appraised value.

Consider a Compensation Adjustment

If your spouse worked in the business without receiving a market-rate salary, the court may find them entitled to compensation or ownership equity. Address this early in your planning.

High-Net-Worth Divorce and Company Ownership

Business-owning spouses are more likely to face a high-net-worth divorce, which adds layers of complexity. This may include:

• Multiple properties or investment accounts
• Executive compensation (bonuses, stock options, deferred income)
• Trusts and family business involvement
• Complicated tax liabilities

Don’t Wait Until It’s Too Late

You don’t need to be a billionaire to learn from Jeff Bezos’ divorce. If you own or co-own a company, your business could be one of the most valuable and vulnerable assets in your marital estate.

The good news? With the right legal strategy, you can preserve ownership, minimize disruption, and position yourself for future success no matter how the personal side of things plays out.

Talk to an Experienced Chicago High-Net-Worth Divorce Attorney Today

Nottage and Ward, LLP, has been serving professionals and high-net-worth individuals across Chicago and Illinois for more than 35 years and is listed by Martindale-Hubbell in its Bar Register of Pre-eminent Lawyers. Call our law firm at (312) 332-2915 to schedule a consultation today with one of our Chicago divorce lawyers.