When entrepreneurship is combined with divorce in California, many financial and emotional concerns could arise. A family or personal business owned by one or both partners can be subject to inclusion in the division of assets in a divorce. This can be very difficult for some spouses, especially when the business is successful and the fruit of many years of work.
The business can be the marital asset with the greatest financial value for many entrepreneurs. Even in a high-asset divorce when both partners have lucrative careers, a business can be a very special enterprise for the owners. In order to deal with the business properly in divorce negotiations, it is important to have an accurate valuation of the business. A forensic accountant can provide a more complete and comprehensive understanding of the value of the company for purposes of asset division. This estimation could take into account inventory, materials, real estate, debts and additional liabilities.
Other factors that can come into play during the asset division process may include whether the business was founded before or after the marriage and the amount of time and effort invested into the business by each partner. Divorcing spouses can deal with the property division itself in various ways. While some couples sell the business and divide the proceeds, others compensate one partner with other assets or arrange a buy-out of the less-involved partner in the business.
For entrepreneurs going through a divorce, a family law attorney could be an essential resource. The divorce lawyer can help ensure that the client’s interests are protected through property division, spousal support, child custody and other divorce matters.