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 review, being carried out by Citi, will assess a full range of alternatives, including partnerships, divestitures and spin-offs. —Kathryn Hopkins, Footwear News, 22 Dec. 2025

The president signed an executive order stating that the deal constitutes a qualified divestiture and delaying enforcement of the ban-or-sale law for 120 days to allow for the transaction’s closure. —Clare Duffy, CNN Money, 18 Dec. 2025

The divestiture was first reported by Music Business Worldwide. —Andrew Flanagan, Variety, 16 Dec. 2025

Cantwell made public a December 8 letter from the Office of Government Ethics that said Bedford had not complied with the ethics agreement and had sought an amendment to extend the divestiture timeframe for the remaining conflicting asset, Republic Airways. —David Shepardson, IndyStar, 12 Dec. 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