The Iowa Supreme Court’s December 2025 decision in In re Marriage of Owen & Brinker carries important implications for small and medium‑size business owners and the attorneys who advise them. The ruling provides guidance on how courts should approach business valuation, income potential and spousal support in divorce cases involving closely held companies.
- No “double dip” between business value and spousal support
The Court reaffirmed that a spouse’s future business income cannot be counted twice; first in the business valuation and again in spousal support. In many cases, future income drives the business value used in property division. This ruling confirms that business owners who buy out their spouse’s interest should not face additional support obligations based on the same future earnings.
- When assets are sufficient, spousal support may not be needed
In Owen v. Brinker, the nonowner spouse received more than $3 million in cash plus her own earning capacity. The Court held that by investing the $3 million equalization payment, she could maintain her lifestyle independently, so traditional spousal support was unnecessary even after a long marriage and despite an income gap.
Key point: Iowa courts focus on need, not on income equalization. Analyzing investment income on equalization payments is critical.
- Courts recognize the risks carried by business owners
Retaining a business also means carrying its financial risks, volatility, debt and operational exposure. In this case, the business owner had to borrow funds to pay the $3 million equalization amount. The Court emphasized those risks when explaining why additional support was not appropriate.
Implication: Attorneys and financial experts should document business debt, cash flow strain and operational risk when representing business owners.
- Strong business valuations and income-available-for-support/needs analysis matter
The case highlights the importance of credible valuation work and divorce support analysis, especially when:
- Future income is central to the valuation methodology
- A large equalization payment is involved
- Support claims hinge on “lifestyle” and earning capacity
A reliable business valuation backed by a thorough income and needs analysis can prevent unfair support outcomes and avoid double counting income.
What this means for business owners and their advisors
- Keeping your business does not automatically mean paying alimony.
- Large equalization payments may eliminate the need for support.
- Income disparities do not control support decisions.
- Quality financial analysis and valuation work are more important than ever.
Supporting You as a CPA, ABV, and CDFA®
As a Certified Public Accountant, Accredited in Business Valuation, and a Certified Divorce Financial Analyst (CDFA®), I help business owners, family law attorneys and individuals navigate the financial side of divorce with clarity and confidence. My services include:
- Business valuation
- Income available for support analysis
- Expert witness support
- Divorce-focused cash flow and support modeling
This decision will shape how valuations and support calculations are handled in Iowa going forward. If you or your clients need guidance on how this case may affect divorce strategy or business owner planning, I’m here to help.