Q. How will my divorce affect my business?
A: Divorce can be a very messy and complicated situation,
especially if there are children and substantial assets involved. The family unit is broken, and property and debts become the central focus of the proceedings. The stakes are high in these instances, so seeking advice from a San Diego divorce lawyer should be the first move you make. In California, property and debt are divided based on the decisions of the court. Getting proper counsel from an experienced California family law firm can assist in preparing your case and providing effective representation to benefit your best interests.
Can a California divorce affect my business?
In California, businesses are considered assets and will be divided based on whether or not the business is separate or community property. There are certain complications that may arise when businesses are involved, such as whether or not the business was owned prior to the marriage, whether it was inherited, and how much time and effort both spouses put into the business to make it thrive.
The couple may be forced to divide the business or sell it to keep things fair. For some, this may or may not be an option if it is the sole source of income for one or both parties. One party may also be awarded the business with the stipulation that they have to pay for the spouse’s community share. Determining the value of a business will require accountants and appraisers to come to a reasonable value by which the sums will be granted.
Dividing property, debt, and assets is a detailed process that requires the knowledge and expertise of a California family law firm that can work on your behalf. Other factors that may affect your business in a divorce include:
~Who is perceived as the primary principal of the business
~Whether or not both spouses are on the registration documents
~How much time has been dedicated to the business from both spouses
~What is the history of the business
~Whether or not a prenuptial agreement is in place
Seek Counsel for Divorce
If you think there is a chance that your union is headed for divorce, it would be best to seek counsel to understand the challenges you may face in regards to your business. These are situations that must be carefully considered to achieve effective resolutions. When preparing for a divorce with substantial assets, being prepared is key. Although the process may start out amicably, disputes over finances can quickly change the dynamics.
Take the time to find out your options to determine how to proceed. At the Law Office of Renkin & Associates, we understand how difficult these legal situations can be. Our goal is to work on your behalf to make sure you are fairly treated and able to sustain after the proceedings are over. For an in-depth consultation, contact an associate today!