Divorce can raise challenging questions about how assets are divided, especially when one spouse owns a business. If you’re going through a divorce, you may be wondering, “Does my ex get half of my business?” The answer depends on several factors, including when the business was established, how it was managed, and whether marital assets contributed to its growth. At Kendall Gkikas & Mitchell, LLP, we’re here to guide you through this complex process as your trusted divorce lawyer in Etiwanda CA. Keep reading for what you need to know about protecting your business during a divorce.
Understanding Community Property in California
California is a community property state, meaning that assets and debts acquired during the marriage are typically divided equally between spouses in a divorce. However, determining whether your business is considered community property or separate property is the first step.
- Community Property: If the business was started or significantly grown during the marriage, it may be considered community property, and your spouse could be entitled to a share of its value.
- Separate Property: If the business was started before the marriage and no marital funds or efforts contributed to its growth, it may be considered separate property, which belongs solely to you.
In cases where a business is a mix of community and separate property, the court will need to determine what portion of the business’s value is subject to division.
Options for Dividing a Business in Divorce
If your business is deemed community property, the court will decide how to divide its value equitably. Common options include:
- Buying Out Your Spouse’s Share: One of the most common solutions is for the business owner to buy out their spouse’s share of the business. This allows you to retain full ownership while compensating your spouse for their portion of the business’s value. Payments can be made as a lump sum or structured over time.
- Selling the Business: In some cases, the business may need to be sold, and the proceeds divided between both spouses. This option is typically a last resort, as it can disrupt operations and may not reflect the full value of the business.
- Co-Ownership: In rare cases, ex-spouses may choose to continue co-owning the business. This requires a strong working relationship and clear agreements about roles and responsibilities. While not common, this arrangement can work if both parties have a vested interest in the business’s success.
Contact Kendall Gkikas & Mitchell, LLP for Expert Divorce Assistance
Navigating the division of a business during divorce requires expertise in both family law and financial matters. At Kendall Gkikas & Mitchell, LLP, we understand the complexities of dividing business assets in divorce and are committed to providing personalized, effective legal representation. If you’re worried about how your business will be handled in your divorce, contact us today at 909-482-1422 to schedule a consultation with an experienced divorce lawyer in Etiwanda CA.
