Coronado is a beautiful resort city on a peninsula of the San Diego Bay. Home to the famous Hotel del Coronado, a busy downtown area, and pristine beaches, there are many locally owned businesses operating in Coronado, some of which are owned by married couples. If you are planning to divorce in Coronado and own a business, an experienced Coronado business division in divorce lawyer is an invaluable asset for determining how your divorce could affect you.
Representing Business Owners in Divorce in Coronado, CA
Neumann Family Law, A.P.C., has successfully represented many clients in difficult divorce cases, including those involving business divisions. Our team excels at resolving high-net-worth complex divorce cases, and we have proven experience helping clients navigate the difficult financial questions their divorces entail. If you are a business owner or co-own a business with your spouse in Coronado, our team can help you make informed decisions and protect your future.
According to the Public Policy Institute of California, there were more than 1.7 million private-sector businesses operating in California as of 2023, and in 2021, there were an estimated 297,000 employer firms and businesses operating in the United States that were jointly owned and operated by married couples. This means that as of 2021, more than 10% of all for-profit small businesses in the country were controlled by married couples.
Ending a marriage is never easy, but it can be especially difficult for a business owner in California. It is natural to wonder whether you can keep your business or how your divorce will affect your ability to run the business. Divorce can also entail various other financial questions and emotional issues, like child custody. Neumann Family Law, A.P.C., can help you approach this difficult process with confidence in Coronado.
Understanding the Community Property Law for Dividing Your Business in Coronado
California enforces the community property law for property division in divorce. This means that all property and debts controlled by a married couple must be characterized, appraised, and then divided according to the community property law, which dictates that all community property must be evenly divided between the divorcing spouses.
Each spouse in a California divorce may claim separate property, which will usually include things they owned prior to marriage, gifts given to them, and inheritance from parents and other blood relatives. However, in some cases, separate property can transmute into community property under certain conditions.
For example, if you owned your business before you were married, but your spouse helped you run the business during your marriage, the business would likely be characterized as community property in your divorce. This can be a contentious issue in any divorce, and it is important to have an experienced attorney on your side who can assist you in making confident and informed decisions about property division.
Dividing Business Ownership in Your Divorce
There are three steps to dividing a business in a Coronado divorce. First, all of the couple’s property must be characterized as either one spouse’s separate property or both spouses’ community property, including the business. It’s important to remember that the community property law in California applies to debts as well as assets and property.
Once the business has been characterized as community property, all of the business’s assets and debts must be evaluated. This can be difficult as most businesses control both tangible and intangible assets. Tangible assets can include property, equipment, cash on hand, and accounts receivable, while intangible assets include goodwill, intellectual property like patents or trademarks, as well as business relationships.
After characterizing and valuing all assets and debts, all community property must be evenly divided between the divorcing spouses. However, there are several options for accomplishing this. One or both spouses may wish to retain control over the business, or one or both spouses may be ready to part ways with the business:
- One spouse could buy out the other spouse’s share of the business. They can offer cash value for half of the business or exchange other community property equal to half the value of the business. Whichever spouse obtains sole ownership of the business would then be responsible for all of the business’s debts as well.
- The spouses may decide to sell or liquidate the business. They would need to settle all outstanding debts first, and then any proceeds from the liquidation or sale would be evenly divided between the spouses.
- Both spouses may agree to continue running the business as co-owners. In most cases, it requires creating new operating agreements for the business to clearly define ownership rights and responsibilities for each co-owner.
These are just a few possible solutions for dividing a business in a divorce in Coronado. Neumann Family Law, A.P.C., can carefully review the details of your situation and listen to your goals and expectations. Our team will do everything we can to help you achieve your goals. You can also trust us to help you with the other aspects of your divorce, including child custody disputes, spousal support determination, and more.
If you have a prenuptial or postnuptial agreement in place at the time of your divorce, we can help you determine whether this contract is enforceable and, if so, how it affects the business division in your divorce case.
Find Your Coronado Business Division in Divorce Lawyer Today
Neumann Family Law, A.P.C., excels at resolving complex high-net-worth divorce cases as well as those involving complex business assets. We understand your concerns about dividing your business in Coronado and want to help you approach this situation with peace of mind. Divorce can be an emotionally draining, expensive, and time-consuming process, and our goal is to help you approach the situation with confidence.
Our firm has successfully helped many clients in Coronado and surrounding areas of California with their divorce cases, and we are ready to apply this experience to your case. Business division in divorce is a complex process, so contact our team today to schedule a consultation with a Coronado business division in divorce lawyer and learn how we can help you.
*CFLS = Certified Family Law Specialist by the State Bar of California Board of Legal Specialization
