divestiture

noun

di·​ves·​ti·​ture dī-ˈve-stə-ˌchu̇r 

-chər, 

də-

chiefly Southern -t(y)u̇(ə)r

: the act of divesting: such as

a

: the voluntary act or process of divesting oneself of an asset (such as a business division) by sale, exchange, spin-off, etc.

b

: the compulsory transfer of title or disposal of assets or interests (such as stock in a corporation) upon government or court order (as in bankruptcy or antitrust enforcement)

Examples of divestiture in a Sentence

Divestitures are used to break up monopolies.

Before divestiture, the telephone company monopolized the state.

Recent Examples on the Web

One of Fishback’s principal issues — government divestiture of Israeli bonds — is a dog-whistle to antisemites. —Sun Sentinel Editorial Board, Sun Sentinel, 26 Jan. 2026

Organic sales, which strips out foreign currency, acquisitions and divestitures, were flat for the quarter. —Amelia Lucas, CNBC, 22 Jan. 2026

TikTok faces forced divestiture in the United States while operating freely in Europe, forcing its parent company to fragment global operations. —Bobby Ghosh, Time, 18 Jan. 2026

As reported, the review is being carried out by Citi, which is assessing a full range of alternatives, including partnerships, divestitures and spin-offs. —Samantha Conti, Footwear News, 15 Jan. 2026

Word History

Etymology

divest + -iture (as in investiture)

First Known Use

1601, in the meaning defined at sense 1

Rhymes for divestiture

• investiture
• vestiture

Legal Definition

divestiture

noun

di·​ves·​ti·​ture dī-ˈves-ti-ˌchu̇r, də-, -chər 

1

: the sale or transfer of title to a property (as an operating division) under court order (as in bankruptcy)

2

: the sale of an asset (as a business division) that is unprofitable, does not enhance a corporate restructuring, or is felt to be morally reprehensible