When you and your spouse go through a divorce, there are many financial considerations you must make, including whether or not alimony is necessary and how you will divide your retirement accounts. However, none of that may be as high of a priority as determining how you will divide your company. If you and your spouse are business partners, the divorce process may look different. The following blog explores what you must know about these circumstances and how a Los Angeles division of property attorney can help you navigate this complex legal process.
How Is Divorce Different For Business Partners?
Generally, divorcing partners will ensure the same process as other couples, with additional considerations necessary. This includes dividing their property, determining a child custody schedule, and deciding who will receive the family home, among other considerations.
However, couples who run a company together must take the time to determine how they will proceed. It’s important to understand that there are many different outcomes that couples can rely on. Regardless of what a couple decides on, California law classifies any business created during the marriage as marital property, making each couple entitled to half of the business. It is likely the company will undergo a business valuation to determine the approximate value of the company.
What Will Happen to Our Business?
There are a number of ways you can handle your shared business when you are divorcing your partner. The most common option is for one spouse to buy out the other. This means you’ll purchase their interest or shares in the company, buying their portion of the ownership. Buying out is a common choice for those who may not be as involved in the day-to-day operations as the other spouse.
Another option that works for some couples is to continue running the business as partners. In fact, some couples may discover that they make better business partners than life partners. However, this will not work for most couples, especially if there are hard feelings and unresolved issues.
How Can an Attorney Help?
If you are going through a divorce and you and your partner co-own a business, it is essential to enlist the assistance of an experienced attorney to help you achieve the best possible outcome for your circumstances.
The divorce process is complex without the additional stress of dividing a business. As such, letting an attorney handle legal matters is vital, as this can be a confusing and overwhelming process if you are unfamiliar with the laws surrounding it.
When you need help protecting your business during a divorce, the Zitser Family Law Group is here to help. Our dedicated team of attorneys has the experience you need to help you navigate this process. Contact us today to discuss the details of your case with a competent lawyer who is ready to help you.