Family-owned businesses and divorce

By |2022-04-07T18:25:32+00:0029 Jun 2015|Categories: Divorce|

Family-owned businesses and divorce

Community property is a common issue that many couples that are divorcing run into. Laws for this issue differ from state to state, so some may find it difficult to understand their state’s laws and how property is to be divided should a divorce occur. Not only may there be disputes about who will get the house, the family business may also be something that spouses find themselves wanting to discuss.

In California, family businesses are considered community property and there is the chance that one spouse may be awarded an equal amount of what the business is worth in the event of a divorce. With the business being considered community property, you may be asked to disclose the financial records so the business’s value can be established and other things such as child support and alimony can be determined. This also allows the spouse who is not the owner of the business to receive a fair share of the business income. The business-owning spouse must share this income due to certain benefits that were accessed, such as tax breaks, during the marriage.

Even though California typically divides property equally, this doesn’t mean that it is always done this way. There is the chance that the court will look at other factors, such as fault, physical health and size of estate to determine property division. If disproportionate division is necessary, one spouse may receive less than the other. To fully understand the process of property division, you may want to speak to an attorney who is familiar with California state divorce laws.

If you are currently going through a divorce and own a business, a California divorce attorney may be able to assist.

About the Author:

Dorie Anne Rogers - The Law Offices of Dorie A. Rogers, APC
Dorie A. Rogers, a Family Law Specialist, Certified by the State Bar of California, has been an attorney since 1981 with an exclusive family law practice located in Orange County. She is accepting dissolution cases with support and property issues including the use of forensics to ascertain business value, community interests and to establish monthly case flow analysis. Ms. Rogers has substantial experience in high conflict custody litigation involving sophisticated psychological issues. She drafts premarital and postmarital agreement designed to define and establish parties' separate and community property interests. Paternity cases and domestic violence matters are considered part of her practice. Ms. Rogers is a court-approved and court-appointed to represent minor children.Ms. Rogers consults with individuals concerned about entering or exiting a relationship. She advises effective strategies for dissolution or premarital planning. Knowledge is power and good planning affords better results.Specialties: Family Law Specialist, Certified by the State Bar of California
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