It is important to know that in the State of California in general, all property acquired during the marriage of community property, meaning that each party is entitled to one-half [the exception to this rule are gifts or inheritance, which remain the separate property of the recipient].
Community property includes not only property, furniture, bank accounts and vehicles, but also includes any businesses that you or your spouse own. There will be an equitable division of all business(es), meaning that both parties are entitled to one-half of the value of the business(es). One party can buy out the other party’s interest in the business by paying one-half of the value of the business to the other party. If the parties do not agree on the value of the business, they may agree to hire a forensic accountant/expert (or seek a Court order appointing a forensic expert) to determine the value of the business. Another option is to sell the business and divide the proceeds equally between the parties.
One party may have a separate property interest in a business, if they started that business prior to the marriage or if they inherited a business. It is likely that an expert would have to determine the value of the party’s separate property interest, if there is any.
If you have any questions about uncontested dissolutions or need legal advice in the family law realm, please contact The Law Office of Laurel Peniche Gartman at (714) 283-2811.
As a Certified Family Law Specialist, Laurel Peniche Gartman has been practicing Family Law for over 28 years in Orange County, California.
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