Newport Beach Business Owner Divorce Lawyer

Newport Beach Business Owner Divorce Attorney

If you are a business owner in California who is seeking a divorce from your current spouse, you are most likely wondering how to protect your business assets and the hard-earned legacy you have built over the years. In these delicate legal matters, it can prove essential to hire the services of a Newport Beach business owner divorce lawyer.

When a married couple divorces in California, their marital debt and property is subject to distribution under California community property laws. In some cases, this community property can include a business that was created during the marriage. In others, the business was started before the couple was married but continued to grow while the marriage was active. At Quinn & Dworakowski, LLP, our divorce attorneys are passionate about protecting your business interests.

Ways in Which Your California Business Can Be Affected by a Divorce

When a divorce is inevitable, it can impact your life in a multitude of ways, including the business you have worked so hard to build. The impact of divorce on your business can vary based on several factors. In California, community property laws dictate the division of property in divorce cases.

Therefore, you may be forced to either split the business with your spouse or give your divorcing spouse another form of compensation that equals half the value of the business. One of the factors that may influence how the business is split revolves around who exactly owns the business.

If you or your spouse inherited the business from a family member, this will influence the final split. If there can be a clear determination of which spouse supported and handled most of the business operations, this will also impact how the business is split in a divorce.

Likewise, if the business was started prior to the marriage, it might be premarital property. However it was formed during the marriage or the business significantly grew while you were married, it will most likely be classified as marital property and subject to community property laws.

When a business is involved in a divorce, it must be appraised. In this valuation process, you will need to take into account the expenses, revenue, and overall market value of the business, along with any liabilities or assets. At Quinn & Dworakowski, LLP, our attorneys are skilled in the practice of business valuation, so we can help you take this vital step in your divorce in Newport Beach.

Quinn & Dworakowski, LLP: Protecting Your Hard-Earned Business Assets in a Divorce

At Quinn & Dworakowski, LLP, we understand how uncertain and frightening it can be when your business may be impacted by a divorce. You have worked hard to build your business, so you deserve to continue building this legacy even following a divorce. Our attorneys have over 30 years of experience in navigating the legalities of these difficult cases, and we are ready to put that experience to work to protect you and your business interests.

Ways to Proactively Protect Your Business in a California Divorce

Thankfully, there exist certain legal strategies that can protect your business and professional legacy from your divorce. The easiest way to proactively protect your business from a divorce is to seek a prenuptial agreement, should your business exist before the marriage is formed. However, this is not always possible, especially if the business started after the marriage took place.

If a prenuptial agreement is not possible, there are still legal options available to you. At Quinn & Dworakowski, LLP, our attorneys can assist you in taking certain steps to protect your business. These include:

• Establish yourself as the sole owner of the business.
• Keep track of all your business records.
• Make sure none of your personal and marital finances are used to purchase items for your business, such as a new computer or office desk.
• Keep all finances separate, and do not mix business expenses with personal or marital expenses.
• Maintain your spouse as an employee and keep records of paying them, like you have paid any other employee in your business.

FAQs About Newport Beach, CA Business Owner Divorce Laws

When Does a Business Valuation Happen in a California Divorce?

In California, a business is typically valuated as close to the trial or settlement date in a divorce case as possible. There can be exceptions, however, especially if the operating spouse drives most of the business’s revenue. In these cases, the appraisal typically takes place at the time of the divorcing couple’s separation.

How Much Does a Business Owner Divorce Attorney Charge in California?

There is no standard price for a business attorney’s work when representing your interests in a California divorce. Some charge a flat fee for simple tasks, but the complexities of valuating, protecting, or dividing a business will likely require an hourly rate. Always discuss fee arrangements with an attorney before hiring them.

How Is an LLC Treated in a Divorce in California?

In California, an LLC, or a limited liability company, is a kind of business where the owner is only liable, or responsible, for their share of the company. If you are seeking a divorce in California and own an LLC, either in whole or in part, your share of the company may be considered community property. If so, your ownership share will be subject to a split under community property laws.

Can My Ex-Wife Take Half of My Business?

California operates as a community property state, so all marital debt and property are subject to an equal split between the two spouses. Therefore, in cases where a divorce is litigated, the judge will review the divorce case and its impacts on the business involved. They will then determine how the business may be divided between the two parties. Other options include buying out the ex-spouse’s claim to the business or, if you both can do so, even continuing to operate it together.

Contact an Experienced Newport Beach Business Owner Divorce Lawyer

If you are contemplating a divorce or are already in the midst of one, you face additional complexities if you are also the owner of a business. In these cases, you need an attorney who can keep your interests and those of your business in mind while fiercely advocating for your rights. At Quinn & Dworakowski, LLP, we can work to protect your business from the impact of a divorce. Contact our offices today to learn more about how we may assist you.