When couples in California are at the end of a marriage and getting a divorce, there are basic issues that will generally come to the forefront, like custody of children, if one spouse will pay support to the other, property division and more. But, if the couple is involved in a business together and their marriage is at its end, it leaves them vulnerable to a whole new set of problems and issues that will be up for dispute.
There are complicated factors and various expenses that arise when dividing a business in a divorce. Mitigating these costs is beneficial to both parties regardless of the eventual resolution. The business itself is a factor, as some are easier to split than others. If, however, both parties are fundamental to its success, then this can take time and require a series of complex negotiations and accommodations to settle.
There are certain common factors with couples who share a business and who are getting a divorce. The assets must be accounted for. A question that must be asked is if the business predated the marriage and if one of the spouses owned it. Then there will be a possibility that the business assets are separate property and not subject to property division. If, however, that is the case and the spouse who did not own the business at the start took part in its growth or helped in other ways, then it could be subject to some level of property division. The value of the business is also key.
A successful business will have assets, such as property – intellectual and real – and more. There will be debts, retirement accounts, cash and investments. There might have been an agreement as to how the business will be divided if the marriage ends, but one party might believe that is no longer applicable. These matters must be considered in a divorce when there is a business at stake. The best-case scenario is that the couple will be amicable and cordial and do their best to be fair with one another. However, in some instances, the case is contentious. When there is a divorce and the couple has been involved in a business together, a law firm experienced in dividing businesses can be essential.