Solana Beach is one of the most sought-after communities in Southern California, offering pristine beaches, incredible natural beauty, and one of the top shopping districts in the San Diego area. Many local businesses are thriving in Solana Beach, including many owned by married couples. If you and your spouse run a business together and decide to divorce, however, you will need the help of an experienced Solana Beach business division in divorce lawyer.
Experienced Divorce Counsel for Business Division in Solana Beach, CA
The attorneys at Neumann Family Law, A.P.C., have successfully helped many past clients through difficult divorces in Solana Beach and surrounding communities of the San Diego area. We regularly handle high-net-worth divorce cases and can help divorcing couples resolve financial disputes in their dissolution proceedings. Ending a marriage in California is never easy, but it can be particularly challenging for business owners.
According to the Public Policy Institute of California, there were more than 1.7 million private-sector businesses operating throughout California as of 2023, and recent business statistics from across the United States report that more than 10% of private businesses in the country are owned and operated by married couples.
Running a business alongside your spouse can be a rewarding experience, but if your marriage ends, it is natural to worry about what this means for your business.
We can help you make more confident and better-informed decisions about property division in divorce as a business owner. You may wish to continue running your business with your spouse as partners, prefer to take over the business as the sole owner, or you may wish to wash your hands of the business and seek an entirely fresh start. Our team will help you understand your options and develop a strategy tailored to your goals.
Understanding California’s Community Property Law for Divorce
Divorce in California requires dividing property under the community property standard. This means all of the divorcing spouses’ property must be classified as either separate property belonging to just one spouse or community property belonging to both spouses. All community property must be evenly divided between the spouses, while each will be permitted to keep their separate property.
It’s possible for disputes to arise over the characterization of certain types of property in divorce. Additionally, the community property law also applies to debts, so divorcing couples will share liability for any debts determined to be community property. Separate property usually includes things a spouse owned prior to marriage, gifts, and inheritance. However, some types of separate property may transmute and become community property under certain conditions.
For example, if you owned your business before you were married, you might assume that it would be characterized as your separate property. However, if during your marriage, your spouse helped run the business, helped pay business expenses, or enabled you to keep the business, it is likely for the business to qualify as community property when you divorce.
Dividing Your Business in a Solana Beach Divorce
For a business to be divided in a divorce, it must first be characterized as community property. This can be a contentious issue, but your Solana Beach business division in divorce lawyer can help you navigate these proceedings to ensure a fair assessment. If your business is designated as community property and is therefore subject to division, all of the business’s assets and debts must then be evaluated to determine the actual value of the business.
This can be a challenging process as most businesses contain both tangible and intangible assets. Tangible assets are physical things like cash on hand, physical inventory, equipment, and real estate, while intangible assets include things like professional relationships, intellectual property, and business development skills. Your attorney can help you ensure a fair and accurate evaluation of all of your business’s tangible and intangible assets.
Once characterization and valuation are complete, the final step is to actually divide the business. However, the couple may have more options for resolving this issue than they initially realized:
- The spouses may wish to continue running the business as co-owners. This can be a difficult process as they must resolve property division for the purposes of divorce and then establish new operating and partnership agreements.
- One spouse may wish to buy out the other’s share of the business and assume sole control over the business. They may need to pay half the actual cash value of the business, or they may exchange other community property of equivalent value.
- The spouses may decide to sell or liquidate the business. In this case, all of the business’s assets are sold, and then the proceeds must first be used to settle any outstanding business debts. The couple would then evenly divide the remaining proceeds of the sale or liquidation.
Neumann Family Law, A.P.C., can explain what to expect with any of these options and assist you through all of your proceedings. You have invested a great deal of time, energy, and money into your business, and it is natural to worry about how your divorce will affect it. Our team has the skills and experience necessary to resolve the most complex business division disputes in California divorce cases.
What to Expect From Your Solana Beach Business Division in Divorce Lawyer
The divorce process is complex, stressful, and time-consuming, especially when you must divide your business. The right attorney can have a tremendous positive influence on your experience with your divorce proceedings, and you will be more likely to accomplish your goals with their help. Neumann Family Law, A.P.C., is confident we can help you resolve business division efficiently and will do everything we can to help you achieve your goals.
You can also trust our team to help with all other aspects of your divorce, including child custody disputes, child support determination, and spousal support agreements. Once you have decided to end your marriage in Solana Beach, it is crucial to consult an experienced attorney so you can prepare for business division with confidence. Contact Neumann Family Law, A.P.C., today to schedule a consultation with a Solana Beach business division in divorce lawyer.
*CFLS = Certified Family Law Specialist by the State Bar of California Board of Legal Specialization
