S-corp and divorce

She is a 25% owner of the company. Those shares have to be valued as of today, not at time of separation. While your earnings after separation are separate, the value of the corporation did not cease as of the date of separation.

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I'll make a point that will not help you now but should help if you ever start another company.

When forming a corporation or LLC, prudent founders will include, in the applicable agreement, buy-sell and voting-rights provisions - including spousal consents - so a portion of the company will not pass to an ex-spouse following divorce. Please see the post at the link below.

Disclaimer: This post does not constitute legal advice and does not establish an attorney-client relationship.