Business Valuation & Division
When a business is created during a marriage by one spouse, the business is generally regarded as “community property.” That means the business belongs to the marriage, regardless of its value or which spouse operates it. The spouse who operates the business may ultimately receive the business. But the other spouse is entitled in general to have the business valued, and to be paid out that spouse’s interest in the business. The business can be anything — from a consulting business, to a medical practice, a tortilla manufacturer and distributor, a software company or a restaurant.
To accurately value and divide a business, you need an experienced lawyer who understands the complexities of community property division. Jonathan D. Larose has an MBA in finance, and many clients find that background brings a greater depth of knowledge and experience in dealing with business valuation and division. Often Larose Law utilizes third-party experts such as accountants and appraisers in the effort to value and divide a business. It is vital to the case that the attorney speak some of the “language” those third-party experts employ.
Each Spouse May Feel Entitled To The Business
The issue of a marital business valuation and division can be quite emotional and complex. The spouse who built the business may not think it’s fair that the other spouse receives what the law requires that spouse to receive. And the spouse who did not build the business believes they sacrificed a great deal for the business to develop and grow. Many times the marriage itself is destroyed by the time the spouse operating the business had to give to the business — time spent away from the marriage itself. We have represented both the originators of a community business and the spouse who did not work in the business itself. We clearly understand both sides of this complex and emotional issue.
We Have The Financial Knowledge You Need
If you own a community business, contact Larose Law early, well before you file for divorce, so that proper planning can be done, if possible. Call 510-945-1082 to reach our Walnut Creek and Fremont, California, offices or contact us online today.