The division of property is often one of the most difficult parts of California divorces. When one spouse owns a business, it can be particularly difficult. If the couple owns the business together, one buying the other out can be a viable solution. But what about women who own their own businesses? There are circumstances that they should be aware of heading into the process.
Planning is key
Well over 11 million women in the U.S. own a business. Going through a divorce can be scary for these women, who have built something from nothing. They don’t want to lose half of it. One thing that anyone in this position should do is make a plan.
When these women started their companies, they made a business plan. Now, they’re simply making a second one. It’s especially important to think about this if she will be the one to initiate the divorce action. In making this plan, it’s crucial to consider things like ownership of the company, financials and the liquid assets available at the time. This plan will be a good resource for the divorce attorney.
Ownership can be especially important when it comes to the division of property. If the spouse is a co-owner or a partner, that will influence the way the judge treats the company. The founding date of the business, and who funded it, is also a key consideration. If the business was started before the relationship commenced, that will be viewed differently than a company that was founded with joint money during the marriage.
It’s crucial to get advice from a good attorney when a woman business owner is getting ready to divorce. An experienced lawyer may be able to provide solid advice on how to proceed.