Business owners spend a great deal of their attention focused on the day-to-day needs of their companies. They have to stay in tune to the demands of the marketplace or they could find themselves struggling to remain relevant in a competitive environment.
When a couple that owns a business together experiences challenges in their marriage, this can prevent another huge obstacle that could have a severe negative effect on the future of the company. This posting discusses some of the steps that you can take to help you protect your investment.
Know What Your Business Is Worth
If you and your spouse have created the entity together, you will need to decide what happens to the company after divorce. It is possible that one of the spouses will wish to continue to own the business while the other may wish to pursue other career opportunities.
In this situation, the parties will have to consider a property division arrangement that includes a fair valuation of the business. This could potentially mean hiring experts and financial professionals to get an accurate assessment of the worth of the business.
California's marital property division laws state that each spouse is to receive an equal share of what they accumulated during the marriage. In cases where there is a business to divide, the parties may substitute other assets to make up for the value of the business. Perhaps one of the spouses will receive the home or retirement assets. Creative solutions are possible, but it is extremely important that you understand exactly the amount of value that you have to work with at this time.
Be Ready For Divorce
One you file for divorce, everything changes. This will be especially true if you own a business with your spouse. It is a good idea to freeze any joint accounts that the two of you may share, as this can prevent your spouse from running up substantial debt or stealing assets.
Also, you may wish to appoint someone to run the business while the divorce is ongoing. This can ensure that basic responsibilities are being met, and that the day-to-day operations will be carefully attended to at all times.
Work With The Right Attorney
If you own a business and considering filing for divorce, it is absolutely essential that you find an attorney to help guide you through the process. You need to be sure that you have someone who can help you prepare a plan that protects you throughout the divorce and ensures a successful transition into life after divorce.
The attorneys at the Contreras Law Firm are committed to working together with you to find the right solutions for your future. You have worked hard to get where you are, and your business can continue to thrive even after your marriage has ended. Take the time to learn more about your options from a member of our legal team.