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Protecting the future of a business during divorce

| Apr 22, 2019 | divorce/marital dissolution

Couples in California and elsewhere may face a variety of difficult decisions upon making the decision to take separate paths in life. For business owners who are facing a similar situation, one of the most vital aspects of divorce may pertain to the division of assets. With the future of the company on the line, business owners may wish to become better informed on all their options, as this could prove vital to making informed decisions during legal proceedings.

One of the first steps to take when preparing for negotiations is to determine whether the company will be deemed community or separate property. If the company was founded prior to marriage and was not mingled with marital finances in any way, it may retain its separate identity throughout legal proceedings. However, there are certain instances in which a business could transition from separate to community property and understanding the classification of this asset prior to entering negotiations could prove imperative.

Another factor owners may need to consider pertains to the possible presence of a prenuptial or postnuptial agreement. Similar arrangements could be used to set guidelines on a variety of topics, such as how the value of the company will be determined and how it will be divided should a couple decide to part ways. Should such an agreement exist, it may have a substantial influence on how the subsequent process will play out.

With a variety of topics to address, some of which may have a significant impact on the future of a company, business owners who are facing divorce could benefit from seeking guidance early in the process. By consulting with a family law attorney, a person in California could obtain much-needed advice in covering each of his or her available options. An attorney can assist a client in forming a strategy to pursue the best outcome achievable concerning the future of his or her company during divorce proceedings.