Divorces are stressful, and with complexities attached, they can be devastating to both parties. When it comes to divorce among business owners, the process can become extremely complicated quickly, which is why business owners dread the possibility of a divorce.
The matters that complicate the divorce of business owners include business valuation, division of the business assets, hidden assets, and possible tax consequences. That is the reason why all business owners must hire a professional divorce attorney who can help them make divorce less stressful and reduce any risk of financial losses.
Understanding Business Valuation
The first step in divorce cases involving business owners is to get a clear picture of the couple’s assets. Valuating all the assets, including the business, is essential in such cases, and the inability to do so can be harmful for your business and the division of assets. The business that you worked so hard to build could be awarded to your spouse, or the Court can order the parties to sell the business and split the proceeds, which may not be beneficial to either party. You can get the help of a professional attorney to get an accurate estimation of your business’ worth.
Differentiating between Separate and Community Property
The next step essential phase of the divorce involving business owners is differentiating between Separate and Community property. If you are getting a divorce in San Diego, you need to know that the state of California is community state. Under the California State Law, the equal division of community property is mandatory. See California Family Code section 760.
There are three possibilities of business ownership, and each of these demands a unique way of handling it. The first case is when you set up the business with your spouse during the marriage, in San Diego Family Law Courts, the business in such a case falls under the category of community property.
The second possibility is that you or your spouse received the business as a result of inheritance. In a situation like this, if you or your spouse kept the business entirely separate from the community, it may fall under the category of separate property.
The third scenario is that you or your spouse set up the business before the marriage. If even after marriage, the business is kept separately, it may fall under the separate property. However, if you used the community funds to run the business, it may fall under the category of community property.
Role of a Divorce Attorney
A professional divorce attorney knows that an individual works tirelessly to build a business, and that is why they will put forth maximum effort to help business owners retain maximum ownership of their business. Expert attorneys have a clear understanding of the California Family Law, and they help their clients proceed with the divorce accordingly.
Want to know more about business owner divorces in San Diego? Contact the Law Office of Doppelt and Forney, APLC, for a 30-minute-free consultation by emailing firstname.lastname@example.org or texting (858)880-6689 today! You will get a chance to discuss the matter in free 30-minute on-phone consultation with an experienced divorce attorney!