According to California laws, any business built in the course of a marriage is regarded as marital property. In such circumstances, when you are about to divorce, the spouse who does not own the business is entitled to half its value. Such divorces get complicated really fast, and that is why you may need the skills of a Pleasanton Divorce Attorney.
Special Considerations for Divorce and Business Ownership
While it is common for emotions to cloud both parties’ interests, here are some considerations to keep in mind regarding divorce and business ownership.
Act in The Best Interest
When you take away half the total value of a business, it may not survive. By asking for a payout of an entire half of a company, you are crippling the operating capabilities of that business. Most businesses will either not survive that loss or will take a long time to recover. In the end, your request could also threaten your spouse’s ability to pay child support or spousal support. A Pleasanton Divorce Assets Attorney will advise you to consider other alternatives instead of a payout. For instance, you can get a stake in the company and enjoy the profits for a long time.
Do Not be Tricked
While one spouse will try to hurt the business owner through the division of property, in other circumstances, the business owner may be difficult to deal with. For example, it is not always that the business owner will willingly disclose all business assets during a divorce proceeding. Some will employ a few tricks like keeping other assets in private accounts to keep any marital property from the spouse. Some of those techniques are unethical and malicious, while some are downright illegal. That is why you may need to work with a knowledgeable divorce attorney in Pleasanton CA, as they understand how asset division works.
Factor in How your Tax Situation Will Be Affected
Most spouses fail to consider the implications of their divorce on tax. Things like spousal support, business ownership, and asset division can affect how you will pay tax next season. Before agreeing to any asset division terms, understand the consequences first. Work with Pleasanton Business and Divorce Attorney to help you choose a long-term solution that will not hurt you later.
How a Lawyer Can Help
When you own a business in California and are about to divorce, you may need to consult a Pleasanton Divorce and Family Law Attorney. They are likely to analyze your situation and offer help accordingly. Some of the common questions divorce lawyers are asked include:
- How do you divide business assets?
You and your spouse can have an amicable agreement on who gets either the whole business or part of it. However, it is not easy to find couples using this method. The alternative is a judge deciding how the assets will be divided. That is why you will need an attorney with experience in such cases to defend you and ensure you are getting what you deserve.
- Is it possible to buy a spouse out of business?
Ideally, it is possible. If one spouse is entitled to half the business, the other can buy them out if they agree. However, the amount required is more than half the value of the company. Since the business will continue generating revenue, you will have to factor in that the other spouse will miss out on all future income. Therefore, a Pleasanton Divorce Lawyer ensures that the spouse being bought out gets half of the business value plus what they would have earned if they stayed on board.
A lawyer is a huge asset when divorcing, and there is a business in the middle. They will help represent your needs in the best way possible. If you are looking for a lawyer, contact Tierney Law Group today for the help you need.