Cardiff by the Sea is a gorgeous beach community in San Diego County. There’s a thriving local economy featuring high-end retail, fine dining, and many ocean-view luxury rental properties. Many couples own businesses in the area, and owning and operating a business with your spouse can be incredibly rewarding. However, if you decide to end your marriage, you will need to consult a Cardiff by the Sea business division in divorce lawyer to help with this process.
Experienced Legal Counsel for Business Division in Divorce in Cardiff by the Sea, CA
The attorneys at Neumann Family Law, A.P.C., have extensive experience representing clients in many types of contested divorce cases, including high-net-worth divorce and divorce cases involving business divisions. Property division can be difficult and contentious in any divorce, but it is especially challenging when it comes to business ownership.
It’s natural to worry about the future of your business and your own future financial security when facing divorce. You have put a great deal of time, money, and energy into your business, and it is possible to face several difficult decisions when it comes to resolving property division in dissolution proceedings. An experienced Cardiff by the Sea business division in a divorce lawyer is the ideal resource in this challenging situation.
The Public Policy Institute of California reported that in 2023, there were more than 1.7 million private-sector businesses operating in California. A 2021 study reported that there were more than 297,000 employer firms and businesses in the United States owned and operated by married spouses, meaning more than 10% of for-profit private businesses in the country are controlled by married couples. Business owners in Cardiff by the Sea need to know what to expect in divorce.
Our team offers responsive and client-focused legal counsel in every divorce case we handle. We can listen to your story and your concerns about your business, and then explain the legal services we provide and how we can help you navigate your case. Divorce can be a time-consuming process even if you are on amicable terms with your spouse, so it’s important to consult an attorney you trust at your first opportunity.
Understanding the Community Property Law for California Divorce
In California, all property division in divorce is resolved using the community property rule. Under this rule, almost all property, assets, and debts acquired by either spouse during their marriage count as community property for the purposes of property division in divorce. This can include income earned by both spouses, any property they purchased jointly, and a business they ran together while married.
Each spouse has the right to claim separate property in divorce, but only certain types of property can qualify as separate property. This usually includes things a spouse owned before marriage, gifts given just to them during the marriage, and inheritance left to them by blood relatives. However, some separate property can transmute to community property under certain conditions.
For example, if you owned your business before marriage but during your marriage, your spouse helped run the business, it is likely that the court will consider the business community property. Your Cardiff by the Sea business division in divorce lawyer can help you determine whether your business qualifies as community property and, if so, explain what you can expect when it comes time to resolve property division in your dissolution proceedings.
Dividing Your Business in a Cardiff by the Sea Divorce
There are three main steps that must be completed for property division in any divorce: characterization, valuation, and division. Characterization pertains to determining whether an asset or debt qualifies as separate or community property. Valuation requires accurately determining the value of every asset and debt the couple controls, including business interests.
This phase of property division can be challenging as most businesses control both tangible and intangible assets, and valuation is more difficult for the latter. Tangible assets include property, equipment, physical inventory, cash on hand, and accounts receivable, which can usually be evaluated with financial records. Intangible assets such as intellectual property and business relationships are more difficult to evaluate.
Once all community property has been assessed, everything is divided evenly between the spouses. California’s community property law is quite strict in this regard, but you may have more options for dividing your business than you expect:
- One spouse may wish to assume sole ownership of the business, meaning they must either buy out the other spouse’s share or exchange other community property equal to half the value of the business.
- The spouses could choose to continue running the business as co-owners. They will typically need to draw up new operating agreements that stipulate their respective rights and responsibilities.
- The spouses may decide to either sell or liquidate the business. They will need to reconcile all of the business’s debts with creditors before dividing the proceeds of the sale or liquidation evenly between them.
Every business owner will have different concerns and goals when it comes to property division in divorce. Neumann Family Law, A.P.C., understands that this can be an emotionally straining and complex process, and our goal is to provide guidance and support through all stages of your divorce case. We can also assist you with all other aspects of divorce, including child custody disputes, child support determination, and spousal support agreements.
Find Your Cardiff by the Sea Business Division in Divorce Lawyer
Finding the right attorney to represent you in your divorce is a valuable investment. The team at Neumann Family Law, A.P.C., has successfully guided many clients through complex, high-asset divorces, and we understand the unique financial issues you are likely to encounter when it comes to dividing your business in divorce.
Divorce can be a lengthy process, especially when you must divide business ownership. Our team will meet with you to discuss the details of your situation and explain the legal services we provide that may help you achieve your goals. Contact us today and schedule your consultation with an experienced Cardiff by the Sea business division in divorce lawyer.
*CFLS = Certified Family Law Specialists by the State Bar of California Board of Legal Specialization
