What Will Happen to My Business in a Divorce?
Like other assets, business interests can be treated as community property or separate property, and sometimes a combination of both.
If your business was started
during the marriage, then it is probably community property. If your business
was started before the date of your marriage, it is your separate property.
However, the marital community may still have a claim to some of the profits and
increase in value that occurred during the marriage, and these values must be
apportioned between separate property and community property interests.
Whether the business is
community property or separate property, it will have to be valued. To do so, it
will be necessary to retain a business valuation expert. Whether valuing a
community property business or apportioning an increase in value in a sole and
separate business, it is important that your attorney understand business
valuations. Your attorney needs to understand the business valuation approaches,
methods and procedures that the expert will use to value the business, as well
as the law that applies to valuing and apportioning business interests.