Divorce is a challenging ordeal for anyone, but for small business owners, the stakes are even higher. The division of assets can be complex, especially when your business interests are involved. Understanding how divorce can impact your business is crucial to protecting your livelihood when getting divorced in California. Luckily, Kendall Gkikas & Mitchell, LLP in Claremont CA is here to help. We specialize in managing these complexities, ensuring that small business owners are well represented throughout their divorce proceedings.
California’s Community Property Law
California is a community property state. That means that any assets acquired during the marriage are considered jointly owned by both spouses and must be divided equally in the divorce. This includes not only personal assets but also business interests, even if only one spouse was actively involved in the business.
Valuing Your Business
One of the first steps in protecting your business is to determine its accurate value. This process often requires hiring a professional business appraiser. The valuation method may vary depending on the nature of the business, its earnings, market conditions, and other factors. Accurate valuation is crucial for ensuring a fair division of assets.
Protecting Your Business
There are several strategies that small business owners can implement to protect their business during a divorce:
- Prenuptial or Postnuptial Agreements: These agreements can specify what happens to your business in the event of a divorce, often stipulating that the business should be considered separate property.
- Buy-Sell Agreements: Common in business partnerships, these agreements can be structured to prevent an ex-spouse from becoming an unwanted partner in the business.
- Paying Yourself a Competitive Salary: If you do not pay yourself a market-rate salary, your spouse may claim that they are entitled to more of the business’s value because its profits were reinvested into the business rather than distributed as marital income.
- Creating an Entity Structure: Forming an LLC, corporation, or trust can provide an additional layer of protection by separating your business assets from your personal assets.
There are many nuances that small business owners need to be aware of when it comes to divorce. The good news is that we are here to help.
How Kendall Gkikas & Mitchell, LLP Can Help With Your Divorce Case
At Kendall Gkikas & Mitchell, LLP, we understand the unique challenges faced by small business owners going through a divorce in California. Our attorneys have the expertise necessary to navigate these complex issues, from asset valuation to strategic asset protection. We work tirelessly to ensure that the final divorce settlement respects your business integrity and contributes to your future success. If you’re a small business owner facing divorce in Claremont CA, don’t risk your business and personal assets by navigating the process alone. Contact Kendall Gkikas & Mitchell, LLP today at 909-482-1422 to schedule a consultation.
To learn more about the reliable and quality divorce services that we offer, visit us on the web.
