La Jolla is well known for its rugged natural beauty, luxury real estate, upscale shopping, and beautiful coastal vistas. Many business owners in the area are thriving, but it is possible for a divorce to disrupt any family-owned business. If you and your spouse operate a business together and plan to divorce, you need to speak with a La Jolla business division in divorce lawyer as quickly as possible so you can approach this difficult process with peace of mind.
Representing Business Owners in La Jolla, CA, Divorce
Neumann Family Law, A.P.C., has years of professional experience handling all types of divorce cases for clients in La Jolla and surrounding communities of Southern California, including high-net-worth divorce cases and cases involving business divisions. We understand that your divorce is a deeply personal issue, and it will also affect your future in various ways. It’s natural to worry about what your divorce will mean for your business, and we can explain what to expect.
About 10.5% of women and 7% of men in California have been divorced, and every divorce case will require resolving property division under California’s community property law. The Public Policy Institute of California reported that as of 2023, there were more than 1.7 million private-sector businesses operating in the state, and about 10% of all small businesses throughout the United States are owned and operated by married couples.
The attorneys at Neumann Family Law, A.P.C., excel at resolving complex divorce cases, and we strive to help every client achieve their financial goals in their divorce proceedings. We understand the various financial concerns you are likely to have about dividing your business, and with our advice and support, you can feel more confident about the difficult proceedings ahead of you.
How Community Property Law Works in a La Jolla Divorce
California follows the community property law for all divorce cases. This means that when a married couple decides to end their marriage, each spouse must produce a financial disclosure statement that includes all of their financial records, detailing all of their property, assets, investments, and debts. All property will be characterized as either separate or community property based on multiple factors.
Separate property usually includes things a spouse owned before marriage, gifts given to them, and inheritance they have received from parents and other family members. It’s possible for a home or business to qualify as one spouse’s separate property in divorce if they owned it prior to marrying, and it is possible for separate property to qualify as community property under certain conditions.
For example, if you owned your business before you were married, but your spouse helped run the business and contributed to its success, the court will likely consider the business as community property. Some of these determinations may not seem fair, but your La Jolla business division in divorce lawyer can help you navigate these determinations and ensure a reasonable outcome.
Dividing Your Business in Divorce
To finalize property division in divorce, all property must be characterized as either separate or community property, and then everything must be appraised for value. When it comes to a business, it can be challenging as most businesses control both tangible and intangible assets. Tangible assets include things like property, equipment, and physical inventory, while intangible assets are things like intellectual property and professional relationships.
Neumann Family Law, A.P.C., has the experience and resources necessary to help our clients accurately evaluate all of the property their business controls. Whether you are expecting to fight for ownership of the business or sell it as part of your divorce, it is crucial that all of the financial details of the business are clearly defined and that you have all necessary records and documentation prepared.
After characterizing and evaluating all of the business’s assets, everything will need to be divided according to the community property standard. However, divorcing spouses have options for how they can accomplish this:
- One spouse can assume full control and ownership over the business if they buy out the other spouse’s share or offer other property equal to half the value of the business. If the other spouse agrees, their respective attorneys can help them negotiate this transaction. The spouse assuming sole ownership will need to take responsibility for the business’s debts as well.
- The spouses may wish to continue running their business as co-owners. They will need a new operating agreement that stipulates their respective rights and responsibilities.
- The spouses may both agree to either sell or liquidate the business and divide the proceeds. This will require settling all outstanding business debts, and then any remaining proceeds would be divided equally between them.
Every divorcing business owner in La Jolla will have unique concerns when it comes to how they wish to resolve this aspect of divorce. It is also possible for various disputes to arise. For example, the couple may disagree as to whether certain debts are separate or community property, or they may not be able to reach a mutually acceptable agreement when it comes to how they will divide the business.
Whether you wish to keep your business or wash your hands of it and start completely fresh after your divorce, Neumann Family Law, A.P.C., can help you make more informed and more confident decisions.
Find Your La Jolla Business Division in Divorce Lawyer Today
It can take a long time to navigate the divorce process in California, especially when you must divide your business. The team at Neumann Family Law, A.P.C., takes time to carefully evaluate each client’s individual needs. We understand that you will likely have many difficult questions about the financial aspects of your divorce and what you can expect with dividing your business, and we are ready to provide the guidance and support you need in this difficult situation.
Our team has a strong record of successful divorce representation in La Jolla and surrounding areas of Southern California. We have helped many business owners resolve their divorce cases, and we are ready to apply this experience to your case. Contact our team today to schedule a consultation with an experienced La Jolla business division in divorce lawyer.
*CFLS = Certified Family Law Specialist by the State Bar of California Board of Legal Specialization
