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

The divestitures will reduce the company’s total workforce by about 1,600 additional employees. —Todd Spangler, Variety, 11 Nov. 2025

Paramount on Monday announced a new round of layoffs, affecting roughly 1,600 employees, tied to divestitures of assets in Argentina and Chile. —Lillian Rizzo, CNBC, 10 Nov. 2025

The review, being carried out by Citi, will assess a full range of alternatives including partnerships, divestitures and spin-offs. —Footwear News, 5 Nov. 2025

Congress signed into law a divest-or-ban order during the Biden administration, but Trump—whose Justice Department must enforce a ban—issued, then repeatedly extended, an enforcement pause in the interest of coming to terms about divestiture. —Andrew Nusca, Fortune, 27 Oct. 2025

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