Divorce as a Business Owner
Dividing your property in a California divorce can be complicated even if you have relatively straightforward property and assets. As a community property state, the law requires spouses to divide all their shared community property as evenly as possible. But what happens when one spouse owns a business? Can that spouse keep the business, or will they have to divide it?
Business interests are community property like anything else in a marriage. Consider the following:
- If you started the business during the marriage, the entire business would be community property.
- If you started the business before the marriage, any increase in value during the marriage would be community property.
As you can imagine, this is not the simplest situation to address. If the entire business is community property, your spouse will need to get their fair share, which is half of the value of the company. You will need to appraise the value of the company, then determine how to best divide it.
There are different options – if you no longer want to operate the company, you can sell it and divide the proceeds between you and your spouse. If you want to continue running the business, you will need to strategize. Your spouse will get half of all of the property, so there are ways to maintain the business if your spouse gets other property. For example, if your home and business are each worth around the same amount, your spouse might keep the house outright, and you might keep the business outright.
Seek Help from an Experienced Manhattan Beach Divorce Attorney
At Furubotten Law, our Manhattan Beach divorce lawyers know how to handle complex property division issues, including those involving business interests. Contact us for a consultation today, and we can discuss your situation and how we might assist with the divorce process.