Tips for divorcing entrepreneurs

Some married entrepreneurs might be afraid of divorcing their spouses because of the possibility that they will lose their businesses in the process. Although California is a community property state, which means that all assets acquired during a marriage are marital property, there are several steps that business owners could take to avoid losing their companies.

Just like starting a business, going through a divorce requires knowledge about the process and a plan to proceed. Divorcing entrepreneurs should identify their property and assets as well as determine how much they are worth. Having all of the necessary paperwork is just as important, including both personal and business affairs. Next, they need to decide if they want to keep operating their businesses following the divorce. Whether or not their spouses have a financial interest in their businesses may affect this decision, but they should really focus on what they want.

Divorcing entrepreneurs should not think that their spouses will automatically get half of their business assets. All marital assets are considered when property settlements are made. This means that they could keep all of their business assets but give up other community property such as the family home or investments. In the end, it is up to the judge to determine whether or not a property settlement is fair and to issue a final order.

Spouses who establish their businesses before they get married might not need to worry as much about losing those businesses because at least a portion may be classified as separate property. This does not mean, however, that their businesses do not affect the division of assets and other matters that arise in a divorce. In the case of a complex divorce that involves a business, the spouses might feel more comfortable going through the process with the support of their own family law attorneys.

No Comments

Leave a comment
Comment Information

Gavin & Dersch Law and Mediation

Vista Office
630 Alta Vista Drive
Suite 210
Vista, CA 92084

Phone: 760-691-1763
Fax: 760-941-4425
Vista Law Office Map

Del Mar Office
12636 High Bluff Drive, Suite 400
San Diego, CA 92130

Phone: 760-691-1763
Fax: 760-941-4425
Map & Directions

Schedule Consultation

Contact our attorneys today

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

  • 10 BEST 2016 | CLIENT SATISFACTION |American Institute of Family Law Attorneys
  • State Bar of California | California Board Of Legal Specialization

    Attorneys Paul Gavin and Wayne Dersch are certified as a family law specialists. Learn More