Dividing Business Assets In Divorce cases
At Flicker, Kerin, Kruger & Bissada LLP, our attorneys assist clients with complex divorce-related issues, including all aspects of property division. These kinds of cases can be contentious, especially when high net worth businesses, valuable assets, trademarks, patented products, national corporations or franchises are involved. Each party wants to walk away from the marriage with what he or she believes is fair, which can make property division all the more difficult.
In these sophisticated cases, seasoned legal counsel and strong advocacy are essential, which is why so many business owners and professionals choose our firm. With offices in Menlo Park and San Ramon, we frequently represent CEOs, CFOs and other executives (or their spouses) throughout the Bay Area.
Addressing Contracts, Characterization And A Myriad Other Issues
Oftentimes, one spouse owns a business that needs to be valued and divided or assigned in the dissolution. When a couple starts a business together or has been running a business together for some time, dissolving the business or keeping it running can be difficult without legal assistance.
Issues such as existing contracts, business ownership and debts must be addressed. Even if one spouse started the business before marriage, there will be issues of characterizing the community efforts during marriage or identifying whether any community assets were contributed to the business during the marriage.
Each person’s individual contribution to the business venture should be taken into consideration. This can be difficult to determine when a partner’s duties are not fully outlined in a partnership agreement. During the dissolution, the valuation of the business will likely take place with the use of a forensic expert. Once the business is valued and characterized, then there will be options for how to divide the business interests.
Possible options for division of the business include the following:
- Buying the other partner’s share of the business
- Selling the business and dividing the profits
A thorough and comprehensive analysis of the situation is required in order to lay the groundwork for successful division. Business valuation and projected revenues may also help guide negotiation sessions or litigation as well as the careful examination of partnership agreements.
Obtaining A Court Order For Division
A court order for division may also be obtained if a partner of the business has breached his or her duties, the partnership has proven to be unprofitable or if misconduct can be proven. If a divorcing couple cannot agree on the terms of division, the matter must be resolved in court.
Our lawyers represent individuals facing business division issues throughout Northern California. To request a consultation, contact us today.