Los Angeles Business Owner Divorce Attorneys in Claremont Serving Throughout California
California is a community property state. Marital property is jointly owned by the spouses and must be split more or less evenly upon divorce. While bank accounts and other simple assets can be easy to divide, other assets can be much more complicated. Business owners facing the prospect of divorce must determine how to account for their business ownership interest in their divorce. Dividing a business in divorce can be difficult and messy, especially if it undermines profitability and customer confidence.
The business owner divorce lawyers at Blasser Law have years of experience helping divorcing parties deal with complex marital assets. We work to protect your business, your interests, and your family at all stages of your divorce. Don’t try to fight your divorce battle alone. Contact our Claremont family law offices for a consultation today.
Divorce Considerations for the Business Owner
At Blasser Law, our business owner divorce legal team understands the myriad issues that can arise when divorcing as a business owner. Determining the worth of the business, figuring out to what extent the business should be considered a marital asset, and protecting the business from harm during and after the divorce process is of paramount concern.
We help business owners consider, appraise, and resolve all manner of business ownership issues that may arise in divorce, including:
- Valuing the business
- Determining whether and what portion of the business is subject to division
- Tax issues
- Protecting the company’s reputation and customer trust
- Maintaining customer and vendor contracts
- Avoiding business dissolution as a result of property division
- Resolving complex business ownership arrangements
- Maintaining shareholder confidence
- Dealing with business partners
Valuing a Business for Divorce
Before a business can be divided between the parties, the value of the business must be ascertained. Closely-held companies and other small operations can be challenging to value, as there may not be anything as clear as an established market cap. Valuation may take into account revenue and expenses, assets and liabilities, and the market value of the business, should sale be an option. Typically, valuation requires input from forensic accountants, business valuation experts, or other financial professionals.
The business owner divorce attorneys at Blasser Law are well-versed in valuing and distributing complex assets as part of a California divorce. We’ll help you explore your options for valuation, making sure to protect your interests and your enterprise every step of the way.
Options for Distributing a Business During Divorce
Once a business has been properly valued, divorcing parties have a few options to consider for division and distribution. The best option for your family and your business depends upon your specific circumstances, including each spouse’s contribution to and involvement with the business as well as your ongoing relationship with your spouse.
The business division divorce attorneys at Blasser Law will help you walk through your options and negotiate the best result for your enterprise. While there are a variety of options for dividing a business upon divorce, the most common choices include the following:
- One spouse buyout. Most commonly, one spouse is more heavily involved with the business than the other. The spouse who runs the business will buy out the other spouse in exchange for cash or an equivalent value of community assets to which the owner-spouse would otherwise be entitled.
- Sell and split the proceeds. If the parties cannot agree to a buyout and there may be a market to purchase the enterprise, then they might choose to sell the business. The proceeds will be split between the parties in accordance with their community property distribution, either as agreed upon in a settlement or as ordered by the court.
- Continue joint operation. If you and your spouse are both heavily involved in the business, and you believe you can continue to work together despite the divorce, you might consider continuing to co-own and co-operate the business. Parties who divorce amicably and can resolve any differences may be able to continue with a minimal shift of ownership interests.
Help Is Available for California Business Owners and Their Spouses Dealing With Complex Property Division Matters
For assistance with divorce as a business owner or spouse, negotiating a property settlement agreement, or dealing with other family law issues, contact a knowledgeable Claremont property division attorney at Blasser Law for a consultation at 877-927-2181.