Business Valuation And Division In Divorce
Divorce gets more complicated when a family business is involved. These days, small businesses are very common and often considered the backbone of the American economy. But when two married business owners decide to end their relationship with a divorce, what happens to the business? How do they divide ownership or assets? Are these even subject to marital property division?
Here at the Law Offices of David K. Yamamoto, attorney David K. Yamamoto has more than 38 years of experience, so you know you can trust our legal team to answer your questions and seek viable solutions. Attorney Yamamoto was also the head of the Los Angeles County Bar Association Family Law Section in 2019 and 2020. When you work with us, we put your best interests first. We prioritize communication and know how to get results.
Three Options For A Family Business In Divorce
When splitting up a family business, the first step is to get a valuation done to determine the true value of the company as a marital asset in Los Angeles. Then you will have three basic options:
- You both sell the business and split the money.
- One of you keeps the business, using loans or other financial assets to buy out the other person’s ownership percentage.
- Both of you keep the business and enter into a new business partnership after the divorce.
The outcome may depend on the type of divorce you have. A collaborative divorce, or one settled through negotiation, is often faster than a litigated divorce. If you and your ex are on the same page – they want to sell their share and you want to buy it, for instance – then this may be a quick resolution. If you and your spouse can’t agree and have to litigate, the outcome for your business can become uncertain.
The business valuation process is also very important when working through your divorce. Valuation may be based on the inventory and assets the business owns, the yearly revenue it brings in, the amount of money you’ve each invested in the company and a variety of other factors.
Contact Us Today
No matter where you are in the divorce process, it helps to have an experienced legal team at your side. Contact us online to set up a meeting or just call 310-905-6463 today for a free 10-minute consultation. Let us show you how we can help you move forward.