One of the most stressful parts of any divorce may be determining a fair value for each asset. This may be particularly difficult when it comes to business valuation. If you are going through a divorce while owning a business or professional practice, San Diego business valuation attorney Roseline D. Feral can work with the necessary experts to help you determine the value of your business accurately. She will take the time to understand your unique concerns, and as an experienced divorce lawyer, she can explain the full range of your options.Understanding the Business Valuation Process
Correctly valuing and fairly dividing a business asset in a divorce proceeding may be an extremely complicated task. We understand this, which is why we work closely with business valuation experts, forensic accountants, and tax experts to determine the actual worth of your business. A number of factors must be taken into account when it comes to correctly valuing a business. Some of these factors may include trade secrets, inventory, intellectual property, debts and assets owned by the business, foreseeable successes and problems with the business, and the tax concerns of selling or dividing the business.
California is a community property state, which means that any assets acquired over the course of the marriage belong equally to both spouses and are subject to 50/50 division at the time of the divorce. Of course, this does not mean that each individual item needs to be divided exactly in half. Instead, one spouse’s share after the division should reflect exactly half of the value of the total assets. For instance, if the spouses own a house together, one spouse might “buy out” the other’s share of the asset. Otherwise, they might sell the house and divide the proceeds. Separate property, on the other hand, is any property that a spouse owned before the marriage, obtained during the marriage by gift or inheritance (or in a few other limited situations), or acquired after the spouses separated. Separate property belongs solely to one spouse and does not need to be divided at the time of the divorce.
Under California’s community property laws, the spouse of a business owner is entitled to a 50 percent share of that business if it was created during the marriage. A business valuation lawyer can assist San Diego residents with determining what this actually means in their situation. If the owner started the business prior to the marriage, the spouse is entitled to half of the appreciation in value of the business that accumulated over the course of the marriage, depending on the type of business and the compensation earned during the marriage. In some cases, the spouses may choose to liquidate the business and divide the proceeds. In other cases, a divorcing couple may not wish to sell or divide the business at all. They may agree to keep it and run it together even after the marriage is over.
A professional practice, such as a medical, legal, or accounting practice, is also considered a business in California. Valuing a professional practice has its own challenges. There are a number of issues that must be considered, including a spouse’s non-monetary contribution. For example, a spouse might have sacrificed their own career or contributed their earnings to fund the education of their spouse. We understand how to properly value these contributions when making a final determination about your share in a particular business.Discuss Your Situation with a Business Valuation Attorney in San Diego
Dividing assets may be an extremely contentious element of a divorce. If you are going through a divorce, and your financial interest in a business is at stake, it is important to retain an experienced San Diego business valuation lawyer who can protect your rights. We are here to answer your questions and address your concerns. We also assist people who need a property division lawyer in cities such as Chula Vista, Coronado, Del Mar, Carlsbad, Encinitas, La Jolla, Oceanside, Escondido, Ramona, Rancho Santa Fe, San Marcos, Valley Center, and Vista. To schedule a consultation, you can contact us online, call our office at 619-232-1010, or reach Attorney Feral directly at 619-301-1191.