When a married couple owns a business together and decides to get a divorce, assets need to be split and distributed.
In California, all property in a domestic partnership can be divided between the two parties in a marriage settlement agreement. In the event of a divorce, a couple should get their business assets valued by a third party. This means the assets must be characterized by the type of property it is, like marital property or separate property.
Here’s what you need to know:
Who Created The Business?
If the business was created by the couple together, then they would both need to decide who will take over running the business. At this point, the business is considered community property, and both parties are entitled to half.
If the couple cannot reach an agreement, both parties will have to agree if one will buy out the partner’s half of the business. This includes if the couple created the business during the marriage. If a couple can not reach an agreement, both parties will have to agree if one will buy out the other partner.
Was it Inherited?
If the business was inherited from a family member or parent, then the ex who is not related to the parents is not entitled to half of the business assets. However, there are some cases where this is not always true. For example, if you added your ex to any legal paperwork like business incorporation paperwork and allowed your ex some control of the business and a title, then they may be entitled to some of the assets.
A prenuptial agreement can designate a business as separate property if it was inherited from a family member. This agreement lists and explains what happens to a business in a divorce.
How to Determine the Value
Last but not least, how do you decide the value of your business, and who gets some of the money? You will need to obtain balance sheets, financial statements, bank records, tax returns, and a value on your office or facilities. This is where a skilled divorce attorney comes into play. Our attorney at Dan McCandless Law has in-depth knowledge and experience in the financial industry, giving our clients the advantage of financial advice and seasoned legal representation. We know the dedication that goes into building a successful business, and we can help value your business and divide your assets in a way that protects your interests.
Who to Call for Help
If you are unsure of where to begin, or if you are even halfway through your divorce process and still need guidance, Dan McCandless Law is here for you. From offering legal counsel to helping you achieve the desired resolution, we are dedicated to helping you navigate the divorce process.
Contact us online or call (858) 266-9171 to schedule your consultation.