Q. What Happens with Domestic Partnership Divorce and Business Ownership
A. The guidelines for a Domestic Partnership Divorce (with Business Ownerhsip)
The guidelines for a domestic partnership dissolution are similar to those set for a heterosexual couple that has decided to file for a divorce in the state of California. If you own a business together, or you have a significant amount of assets that you earned as a couple, it is important to seek the services of a California family law firm to help you establish how to divide your assets as you end your marriage. Even if your separation starts out amicable, it’s crucial to divide your property accurately and fairly.
Assets Brought to the Marriage are Considered Separate Property
If you had a house, a business, a trust fund, or a large bank account before you entered into a marriage or a domestic partnership, these assets are considered separate property. As you dissolve your marriage or domestic partnership, you will be asked to list all of your debts and assets as part of the proceedings. Anything that you kept clearly separate from your spouse throughout your marriage will remain yours, as long as you can prove you are the first and only owner.
Businesses Started by Both Parties will be Divided Equally
As a business owner looking for options to end a marriage or domestic partnership, it will be in your best interests to hire an experienced San Diego divorce lawyer to help you go through the process. If both parties of the marriage or domestic partnership started a business together, each will be responsible for debts that were incurred as well as any assets that have been established. The business will have to be valuated by a third party resource, and if either party wants to keep the business, they will have to buy out the other party to do so.
The Business Can’t Exist Without You
Final control of your business should be your main concern. While it is only fair that your former spouse is compensated financially for their contributions to the success of your business, if the business can’t exist without your expertise, you will be the one that retains final control of the business. If you are a solo practitioner of medicine, a therapist, or you run a business that relies on your education and expertise only, you are the reason the business exists in the first place. Your former spouse isn’t going to be able to take over a medical practice (unless they also have the same education), so it is reasonable that you will retain control of your business.
Whether you are divorcing from a marriage or you are breaking up a domestic partnership, both relationships are a legal entity recognized by the California courts with established guidelines on how each are dissolved. When you are concerned about a business that you own and you aren’t sure how the asset will be divided, it’s time to consult with a California family law firm experienced in divorce proceedings and same-sex domestic partnerships that are dissolving.
Know Your Rights – Retain Your Business During Divorce
You have the right to retain your business, but you will have to prove that you are the driving force behind its success. Know your rights in a divorce proceeding and carefully consider all of your options before you sign any paperwork. Contact a divorce lawyer to learn your rights.