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Divorce for Business Owners

One of the most contentious aspects of the divorce process is the division of assets and property. As a business owner, this process may be more complex for you, especially if you have concerns regarding its ability to survive the split. How your business is handled throughout the process of dissolving your marriage will depend on a number of factors, including when the business began.

Dividing a Business

If you started the business before you married your spouse, everything up until that point would be considered separate property. However, its appreciation in value during the marriage could be considered marital property and subject to division. Given that California is a community property state, all marital assets, including a business, will be divided as equally as possible, unless otherwise stated in a marital agreement.

Your business will also have to be valued, which is another point on which spouses often disagree. To assess its value, you and your spouse will need to seek the opinion of one more qualified professional, such as a Forensic accountant experienced and qualified to value the business. If your case goes through litigation, a judge will determine which forensic accountant can provide a more reliable valuation.

If you have reservations about dividing the business and would like to see it remain whole, you can buy out your spouse’s share of it. You can accomplish this by either paying for it in cash or, if you lack the funds, you can give your spouse a comparable share of marital property in exchange for their portion of the business. If you are amicable enough terms with your spouse, you might also want to consider the prospect of continuing to manage the business together. In cases where spouses may not wish to continue the business, they can agree to sell it in its entirety and divide the sale proceeds.

Request a Case Evaluation with an Experienced Divorce Lawyer Today!

If you are a business owner and choosing to end your marriage, the family law team at Patricia Barberis, A Law Corporation can help you. Our divorce attorneys have served South Bay since 1977 and is committed to providing exceptional legal representation and guidance. You can rest assured our team will fight tirelessly on your behalf to protect your interests.

Reach out to our law firm today at (310) 904-6648 to set up a consultation with one of our family law attorneys to get started on your case and learn more about what we can do for you.