Dividing Business Assets In Divorce
The division of business assets in divorce is complex. There are a number of issues that need to be resolved.
Even if you or your spouse started a business prior to your marriage, any interest acquired during marriage may be considered community property. This is just one of the many important reasons to consult a lawyer who understands California’s community property laws and can help ensure that you receive a fair division of property during your divorce.
When determining each party’s interest, there are many issues that need to be resolved. These include:
- Was the business interest acquired before or during the marriage?
- If the business was acquired during the marriage, what source funds were used to fund the business interests? Were those funds separate or community property?
- If the business was acquired before the marriage, what interest has the community acquired in that business during the marriage? How should that community interest be divided?
Understanding Your Options
If you owned the business before you were married, you may believe that you alone will retain the business asset after the divorce. This is not correct. By virtue of contributing efforts and labor during the marriage, the community acquires an interest in the property that was started before marriage. Even if you started a business during marriage, the source of funds for that business interest may impact the interest the community has in that business.
One party may buy out the other, the business can be sold completely, or a party may be awarded the business in lieu of other assets. It is possible for both parties to continue to own a business together after divorce, but it is challenging to make this arrangement work.
Let Us Help You Make The Right Choice
We will take the time to review your situation and review all possible options with you. Our priority is to find the best long-term solution for you. Call [nap_phone id=”LOCAL-REGULAR-NUMBER-1″] or use our online contact form to schedule a meeting. Our attorneys represent clients throughout California from offices in Calabasas and Santa Barbara.