The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

DIVESTITURE Definition & Legal Meaning

Definition & Citations:

A CORPORATE FINANCE transaction where a company sells a subsidiary or a portion of its operations to a third party. A divestiture typically occurs when the company no longer views the ASSETS as essential to its business, prefers to refocus its operations more narrowly, or needs to raise funds for other purposes. See also CARVEOUT.


This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.