Running a business in California is a risky as well as a rewarding endeavor. From small startup companies to larger, more established corporations, each one faces unique challenges and obstacles in today’s world. The future and success of your business depend largely on how you handle those challenges.
One of the challenges that may arise is the need to divide your business due to one of the owners being involved in a divorce or due to the death of an owner. When this occurs, Inland Empire businesses need a law firm on their side to help them handle and navigate the unique challenges that with a potential dissolution of the business and/or disassociation with one of the owners.
When a couple goes through a divorce, all community assets are split. The courts will determine what properties are considered to be marital properties and which are separate. In general, however, any property or assets gained during the marriage will be subject to Equitable Distribution.
In California, the state considers all businesses created during a marriage to be community property and subject to division during a divorce. This means that spouses generally must divide the spouse’s interest in the business in half. As you can imagine, divorces involving the interest of a business as community property can get complicated, heated and result in costly litigation. This is because the business-valuation process is costly, and the value of a business can be substantial affecting the financial status of both parties significantly. Further, the business can may be required to produce substantial financial documentation, including potentially confidential and trade secret information, as part of the business valuation process.
If you are a business owner, the thought of losing half of the value of your business may be terrifying. After all, you need that value and capital to survive. Fortunately, there are ways to go through a divorce and to keep your business’ operating capacity intact and protected. Asset division is complicated and requires a skilled attorney who understands these complexities. We know the red flags to look for during a divorce, and we can help you avoid pitfalls that could jeopardize the health of the future of your business.
While a buyout is most common for divorcing couples, what happens when both spouses are involved in the business? This creates a different type of complication, as both parties will seek to maintain a vested interest in the company and in its future.
After valuing your company, our Riverside business division lawyers will help you determine the best option for you and your business. This may include:
-Buying the business
-Dividing the business
-Selling the business
-Dissolving the business
-Keeping the business relationship intact
Obtaining an equal division of assets in a business divorce is difficult. It is highly unique and dependent on individual issues and circumstances. For this reason, you need an experienced Business division attorney from The Knez Law Group on your side. Our lawyers are familiar with valuing and handling the division of a business, and we can ensure you receive equitable distribution.
If neither of you want to give up a family-run business, then you and your ex spouse will need to work on how to maintain an amicable and professional relationship. Co-owing a business with your ex spouse may not seem ideal, but for many couples it is the best solution to maintaining a profitable business.
At The Knez Law Group, our experienced business division attorneys have represented business owners throughout Riverside, San Bernardino, Los Angeles, Orange County, and San Diego. To learn more about how our Riverside business lawyers can help you, contact the Knez Law Group today at (951) 742-7681.
Knez Law is a father and son law firm serving Southern California.
Being a smaller firm, Knez Law has a reputation of providing personal attention to their clients while providing effective legal solutions in the areas of business litigation, personal injury, family law, probate litigation, employment litigation and legal and medical malpractice.
Senior partner, Fred J. Knez, founded the firm based on the belief that solid legal representation requires a commitment to the client’s needs and a focus on successful results. At Knez Law, we pride ourselves on one-on-one relationships with our clients, and a legal team dedicated to effective representation.
