San Diego Divorce Attorney Serving Business Owners
At the Law Office of Renkin & Associates, we cater to business owners and other high-net-worth individuals who are looking for experienced representation to secure their assets during their divorce. Unlike other law firms, we don’t just take on any client who comes our way. We choose to represent business owners – savvy individuals who often have the most to protect and the most to lose if they do not have an experienced advocate fighting for them in negotiations and in court.
If you own a business and are considering filing for divorce in San Diego County, or if your spouse has filed or may be planning to file, we can help you protect your business and other assets. Contact us today to schedule a confidential consultation with Richard Renkin.
Divorce Services for San Diego Business Owners
If you and your spouse may be going separate ways, you are right to be concerned about how your divorce will affect your business. California’s divorce laws are complex, and one of the areas that is most affected by these complexities is the ownership and management of privately-owned businesses. While your spouse may claim that he or she is entitled to partial ownership or control, the truth is that there are numerous factors – and steps you can take – that will impact the distribution of assets in your divorce.
When we represent business owners going through a divorce, we focus on ensuring that our clients can retain maximum ownership and control of their companies. We have extensive experience representing business owners, and we know the arguments that can be successful in protecting business owners’ rights.
Q. What Do I Need To Know About Business Ownership and Divorce Proceedings in California?
A. If you are preparing to file for a divorce, or a domestic partnership dissolution,
it is important to consult with an experienced San Diego divorce lawyer before filing your paperwork. If you are a business owner and you are concerned that the business can be controlled by your ex, only a qualified California family law firm will be able to help you sort through the complexities of the process.
It Has to Be Determined if the Business is Community or Separate Property
In the state of California, all community property of the marriage or domestic partnership is divided up between the two parties in a marriage settlement agreement. Not all property owned by one party is considered community property. Assets that were inherited by one spouse or assets that were earned prior to marriage are considered separate property. If you owned a thriving business prior to getting married, the business is your separate property and will be treated as such in a divorce proceeding in San Diego.
You and Your Spouse Started the Business Together
If you and your spouse started the business together, you will have to decide if you want to be the one to continue running the business. As a piece of community property, both parties are entitled to half of the value of the property. If you are both on the registration paperwork, and you both have a say in how the business is run, you will have to buy out your spouse in order to retain control of the business.
The Business Is a Family Business You Inherited from Your Parents
If the business you are concerned about is a business that you inherited from your parents, your ex is not entitled to half of the business assets. If you have been wise, and you have kept your business completely separate from your marriage, then the business you inherited is yours to keep. If you added your spouse to the business incorporation paperwork, gave your spouse a title, and allowed your spouse to have control in the business proceedings, they may be entitled to some of the assets. If the business grew as a direct result of your spouse’s involvement, it is likely that this will be taken into consideration.
As with any divorce that involves a business, your business value will have to be determined by a third party. An accountant or valuation team will consult all of your business records and determine what your business is worth at this time. Future earnings are always considered when valuation is determined, and your current success in your business can result in a higher payout to your former spouse.
When you are concerned that your spouse is going to be able to control your business assets, it is best to get prepared before filing for your divorce. Encourage your spouse to find other employment and remove responsibilities from your spouse if at all possible. Gather together information that proves you are the primary business owner and allow a third party to come in and assess your business for the court system.
Predicting how the division of business assets in a divorce will play out is not a clear science. The judge typically has the power to make the final decision, so it is up to your lawyer to present a compelling, fact- based case as to why you should benefit by getting more from the business. If these facts are not clearly presented, the judge will be making an ill-informed decision, which may not be in your favor. This is one of the many reasons that you need not just a good divorce attorney but the best divorce attorney.
If you are considering a divorce, there are several things that you can do to prepare yourself for the inevitable. Even if your divorce starts out amicably, there is no guarantee that it will stay that way. When there are assets or children involved, you should always hope for the best but plan for the worst. Settling outside of court is always the goal, but it is unwise to count on that being the outcome.
There are things we can do in advance that will make the division of business assets in a divorce go more in our client’s favor. Here are some suggestions to consider while planning for your divorce.
· How involved is your spouse in the business? If your spouse does notactually work in the business, do not put them on the payroll, give them a title, or business cards. While there may be tax advantages to this strategy, it creates unnecessary issues. Simply give yourself a larger paycheck and take care of the household through your earnings.
· Is your spouse on the registration documents? If you file for divorce and your spouse is on the incorporation documents, they will continue to have access to the business funds even if they are not actually working the business. This gives them the ability to act on behalf of the corporation and will tell the judge that they are involved and deserve a considerable piece of the pie.
· Does your spouse work anywhere else? If your spouse is not working, you should at least encourage them to volunteer or become involved in other community activities. This will help them transition when you do have a divorce and show further proof that they are not actively involved in the company.
· Who signs the contracts? If you want to be perceived as the primary owner of the business, you need to be the one signing all of the business contracts that your company enters into. Having your spouse sign them proves their involvement.
· What is your business history? If you have both been involved in the business, a judge is likely to look at your business history to determine if you were married when the business started and if you both worked the business full-time from when it was created to the divorce filing. If one of you temporarily worked elsewhere, that will be taken into consideration and may show that you are or are not the primary business owner.
· Business assets and debts. A judge will likely make a ruling as to the distribution ofassets and debts including the business. It is important that you have a paper trail backing up any claims you have to an asset or why your spouse should be responsible for a certain debt.
· Obtain a business valuation. The judge may require one of you to buy out the other party. If this is the case, you need to know what your business is worth by obtaining a third party report.
Divorce is complicated and never easy. While it may feel uncomfortable to plan for your divorce, prior to filing or talking to your spouse, this is the best way to protect yourself and your assets. Once the process has been started, it is difficult to maneuver as the other side may get court-ordered limitations that would prevent you from accessing money or making any major business decisions. Contact us for a consultation to learn how we can help.
Learn more in these articles written by San Diego divorce attorney Richard Renkin:
- Need to Know – Business Ownership & Divorce
- Is My Wife Entitled to Half of My Business if We Divorce?
- Determining the Division of Business Assets in a Divorce
- California Divorce and Business Ownership FAQs
- Domestic Partnership Divorce & Business Ownership
For additional steps you can take to protect yourself, read How to Divorce-Proof Your Company.
Why Choose a Certified Family Law Specialist?
With nearly 30 years of legal experience, Richard Renkin has been a Certified Family Law Specialist since 2006. This means that he has not only met the requirements for certification, but that he has continuously met the extensive practice-based certification requirements for more than a decade.
Why choose a Certified Family Law Specialist? Because certification demonstrates both (i) extensive family law experience, and (ii) a steadfast commitment to helping clients successfully navigate their divorces.
Why Choose the Law Office of Renkin & Associates?
There are several law firms that handle divorces in San Diego. So, why choose us?
- Experienced Divorce Attorney – Richard Renkin has nearly 30 years of legal experience, and he has been handling divorces in San Diego County since 1991.
- Commitment to Divorce Representation – Unlike other firms, we focus exclusively on representing clients in divorces and family law matters.
- Focus on Representing Business Owners – We focus on representing business owners and other high-net-worth individuals. We know what you care about, and we know how to help you protect what matters most.
What Do Clients Say About Attorney Renkin?
Here is what some of our clients have had to say about attorney Richard Renkin:
- “We developed a strategy and Richard handled my case professionally to a successful conclusion. Everything was up-front and there were no hidden fees or other surprises in the process.”
- “I highly recommend Mr. Richard Renkin . . . the final outcome was better than the [other] family lawyers that I had interviewed [suggested].”
- “Richard was available, spoke plain language and clearly explained all of my options. The result of his work was exactly what I desired.”
Contact Us to Schedule a Confidential Consultation
If you own a business and are preparing for a divorce in San Diego County, contact the Law Office of Renkin & Associates today to schedule your initial consultation. You will work with Richard directly throughout your divorce. To get started, we invite you to call 619-299-7100 or contact us online now.
- Can My Ex Take Ownership of My Business During a Divorce
Photo via flickr by Dmitry