Separate and Community Business Valuations
Business interests are an asset just like a residence or a bank account. You may be the owner of a business that was in existence prior to your marriage. If, during your marriage the business has increased in value it is possible that the community may share in the increase in value. If there was an investment of marital funds in the business a community interest will also be created. If your spouse owned a business before your marriage and, during marriage, you contributed your time, labor & talent to the business that increased the value of the business this contribution may as well create a community interest in the business.
Amongst other factors, the type of business and the amount of increase in value during the marriage are considered by the court to determine the extent of any community interest. Experts are required to determine this interest. There are basically two major theories Family Courts will utilize to determine community interest in businesses owned before marriage. But the Family Court is not limited to these two major theories. The Family Court can use whatever formula it finds necessary to achieve justice between the parties.
Of course, any business created during the marriage will be community and may be subject to equitable division in your divorce. In order to determine if your business assets are separate or community property, you need a skilled business valuation attorney. Experts are typically utilized to value business interests.
In order to determine the value of your business and its effect on your divorce, it is important you hire experienced legal counsel. I am John S. Yohanan and I have helped countless clients determine the value of their business interests for divorce purposes. When necessary, I will work with financial experts and forensic accountants to ensure property is equitably divided in your divorce.
To speak with an experienced Calaveras County divorce and business valuation attorney, contact my family law firm. I offer free initial consultations and dedicated personal service to each of my clients.Dividing Business Assets in Divorce
For more than 30 years, I have been helping clients in California value their businesses so they can rest assured their divorce is comprehensive and complete. In California, assets and debts acquired during the marriage are community property. This means businesses created or business interests acquired during the marriage are subject to division during a divorce.