Starting a business with a spouse might seem overwhelming at first, but many California couples find this to be a lucrative and exciting option. However, there is a chance that starting that business might feel easier than splitting it up during property division. For married business owners who are ready to divorce, dealing with business matters can be extremely complicated.
Before deciding what to do with the business, it is important that everyone involved understands its value. Thoroughly valuing a business can be a complicated process and it might be hard for interested parties to produce an unbiased result. It is usually best to utilize an impartial third party to establish the value.
For divorcing couples who work well in business but not in marriage, it might be appropriate for both to simply keep the business running as usual. This is a good option for individuals who are willing to remain civil with their ex. At first glance, continuing to run the business with an ex can seem like a good idea since many people have an emotional investment in their business. However, this option is not appropriate for everyone, and couples should carefully consider the implications before moving forward.
The most popular option is for one person to buy out his or her ex’s interest in the business. This is where having an accurate valuation becomes incredibly important. Knowing the actual value of a business is also important when couples jointly decide to sell of the business and share the resulting proceeds.
Running a business requires significant time, financial and emotional commitment from owners. Understandably, California business owners might feel incredibly attached to what they have created and struggle to handle the matter during property division. In such cases, guidance from an experienced attorney can be beneficial for those who are unsure of how to proceed.