Who Gets Business Assets In Divorce?
When you have put so much time into building a business, it is hard to imagine letting go of any part of it. But in many circumstances, business assets are subject to division in divorce.
If your divorce involves business assets, it is important to have an attorney on your side to represent your interests in this complex process.
Addressing Business Interests Under California’s Community Property Laws
California is a community property state when it comes to marital property division. This means that any property or income acquired while you and your spouse are married is considered to be jointly owned, regardless of whose name is on the paperwork.
“Property” in this sense includes businesses; so, if you and your spouse started a business after you got married, you will likely have to divide those assets in the divorce. Even if you started your business before your marriage, a portion of those assets will be likely considered community property. There are a few ways this can be done, and with the help of an experienced divorce attorney, you can find the best solution.
How To Divide Business Assets In Divorce
There are generally three options for handling a business during divorce:
1. You and your spouse can work together and negotiate who will own and operate your business after the divorce. Our attorneys are experienced in negotiation as well as mediation, and can help you through this process if that is the best solution.
2. A judge may make a determination on who gets business assets. Since community property is split 50/50, generally a court will give the business to one spouse and ensure assets of equal value go to the other spouse or require a spouse to buy out the other’s interest in the business. In these cases, we work closely with experts on business valuation to ensure the division of assets is fair and equitable.
3. In some rare situations, the best solution may be to sell the business and divide the proceeds. To learn the best option for you, consult with the experienced divorce lawyers of Rombro & Manley LLP.
We’ll Help You Protect Your Assets
With over 40 years of combined experience in divorce law, we can help you determine your options and find the best solution.