What Does Divest Mean?

By Kristi Waterworth – Updated Apr 16, 2025 at 11:54 PM EST

Key Points

Divesting means selling assets, either for strategic shift or legal necessity.
Companies use spinoffs, equity carve-outs, or sales to divest strategically.
GE's spinoff created GE HealthCare to focus on its growth, benefiting shareholders.

Investing is an exercise in buying things that you hope will bring more money back to yourself or a business over time. But there's a flip side to investing. Sometimes you don't want to hold onto that investment forever, in which case you might choose to divest.

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About the Author

Kristi Waterworth has been a contributing real estate and financial expert at The Motley Fool, covering real estate, investing, and personal finance topics, since 2020. Kristi has been interviewed by various TV media outlets and podcasts for her real estate investing expertise – from residential real estate to digital real estate and everything in between. Kristi’s journalist career spans over 25 years, and she has written about real estate investing, homeownership, and home construction specifically for the last decade. She was also previously a licensed Realtor and general building contractor before the Great Recession and housing market collapse. She holds a bachelor’s degree in American history from Columbia College in Missouri.

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Kristi Waterworth has no position in any of the stocks mentioned. The Motley Fool recommends GE Aerospace. The Motley Fool has a disclosure policy.