Carlsbad is a beautiful area, home to California Legoland, the Flower Fields, and a variety of high-end shopping venues. Many locally owned businesses are thriving in this affluent and welcoming community, including many run by married couples. If you run a business with your spouse and decide to divorce, it is important to consult an experienced Carlsbad business division in divorce lawyer so you are prepared for this difficult process.
Representing Business Owners in Carlsbad, CA, Divorce
Neumann Family Law, A.P.C., has years of experience representing clients in a wide range of difficult divorce cases in Carlsbad and surrounding communities of the San Diego area. We are experienced in high-net-worth divorce, business division, and dividing complex assets in dissolution proceedings, and we are confident we can help with your situation.
Ending a marriage is never an easy experience, but doing so as a business owner can be particularly challenging. You face various challenges in this process and need a legal advocate you trust to help you make informed and confident decisions. Trust Neumann Family Law, A.P.C., to provide compassionate guidance and support for all stages of your divorce proceedings in Carlsbad.
According to the Public Policy Institute of California, there were more than 1.7 million private-sector businesses operating in California in 2023, and recent estimates report that more than 10% of small businesses nationwide are owned and operated by married couples. While running your business with your spouse may have been rewarding, ending your marriage as a business owner can be an incredibly difficult process, and our team is ready to help you.
Understanding Property Division in Your California Divorce
Ending a marriage in California requires dividing property with your spouse under the community property standard. While community property law aims to be as fair as possible by limiting uncertainty when it comes to splitting property in divorce, many people find it overbearing and, in some cases, unfair. This can be a particularly challenging aspect of divorce when one or both spouses own a business.
All property and debts in a California divorce are designated as either one spouse’s separate property or the couple’s community property. All community property is then equally split 50/50 between the spouses. It’s possible for disputes to arise over the characterization of certain assets and debts. For example, separate property usually includes anything a spouse owned prior to marriage, but some separate property can transmute into community property over time.
For example, if you owned your business in Carlsbad before you married, you may assume that in your divorce, your business would qualify as your separate property. However, if your spouse contributed to running the business over the course of your marriage, it is possible for the business to be deemed community property and would, therefore, be subject to division. Your attorney can help you resolve any such disputes.
How to Divide Your Business in a Carlsbad Divorce
During any California divorce, the spouses must each provide financial disclosure statements that include all of their financial details in order for property division to unfold fairly. The same applies to dividing a business; all of the business’s financial records must be disclosed, and if the business is characterized as community property, all of the business’s assets and debts must be evaluated to determine the actual value of the business.
This can be challenging as most businesses control both tangible and intangible assets. Tangible assets can include things like physical inventory, equipment, accounts receivable, and cash on hand. Intangible assets typically include intellectual property, business relationships, and similar resources. Your Carlsbad business division in divorce lawyer can help you accurately assess the value of all property and debts your business controls.
When it comes to actually resolving business divisions, you may have more options to accomplish this than you initially expected:
- You and your spouse may wish to continue operating the business as co-owners. You must still resolve property division for the purposes of divorce, but the business may be able to continue if you draw up new operating and partnership agreements. Both co-owners will need to have their respective rights and responsibilities clearly defined with legally enforceable contracts.
- If one of you wishes to assume sole control over the business, it will require buying out the other’s share. This could be done with a cash purchase of half the business’s total value or by exchanging other community property equal to half the value of the business. Note that taking over the business as the sole owner will entail greater responsibility, and you would also be assuming responsibility for the business’s debts.
- The two of you may decide to sell the business or liquidate it entirely. This can be a lengthy process, and you will need to settle all of the business’s outstanding debts before dividing the remaining proceeds equally.
You have invested so much into your business that it is natural to worry about how your divorce will affect it and what your options are in this challenging situation. You need a Carlsbad business division in divorce lawyer on your side to reach optimal results in your dissolution proceedings.
Neumann Family Law, A.P.C., can not only assist you with all aspects of property division in your Carlsbad divorce but also other issues you must resolve, such as child custody, child support, and spousal support. We believe in client-focused legal counsel and know the various challenges and opportunities you might face in your dissolution proceedings.
Find Your Carlsbad Business Division in Divorce Lawyer Today
Once you have confirmed that you are divorcing in Carlsbad, it’s important to consult with an experienced attorney at your first opportunity. It will take time to gather all of the records and documentation you will need, not only for the business division but also for resolving all other elements of your divorce. Our team can provide confident and responsive legal counsel through all stages of your divorce proceedings in Carlsbad.
We develop individually tailored legal strategies for all clients we represent in the San Diego area. Contact our firm today and schedule your consultation with an experienced Carlsbad business division in divorce lawyer and learn how we can assist you.
*CFLS = Certified Family Law Specialist by the State Bar of California Board of Legal Specialization
