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Division of Community Property

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California is a community property state. California defines community property as all that property, both real and personal, which a married person living in the state acquires during the marriage. This includes property that is located outside the state as well as within the state. With the exception of separate property, no matter how property is titled, and, in the case of income, no matter who earned it, if it is acquired during the marriage it is considered part of the marital community estate.

Upon dissolution of the marriage, community property, absent an agreement between the parties, is divided equally between them. However, an absolute equal division of each asset would not be possible or even reasonable in many cases. For example, to achieve an equal division of every asset would require sale of each asset and division of the proceeds. For many families, forcing sale of the family residence at the time of the dissolution can cause disruption to the family and result in even more inequity than awarding the residence to one spouse while awarding another asset of equal value to the other spouse. As a result, valuation of properties may become one of the major points of dispute between parties.

Divorce and Business Owners

Your business is important to you. You have put a considerable amount of time, money and effort into starting and growing a valuable asset that means more than a number on a balance sheet. As a business owner facing a divorce, the stress of losing a relationship can be compounded by concerns over losing all or part of your business.

Call me for a free evaluation (831) 459-6718For entrepreneurs, a divorce is a complex matter filled with questions: What will happen to my company? My spouse is my business partner, who gets what now? Is my business considered community property? Having a skilled divorce lawyer to help guide you through the relevant legal issues is crucial. I understands the value of your business, I am a business too. I have helped other business owners in divorces protect their interests and I can help you protect yours.

Your Divorce and Business

One of the most important concerns business owners face in a divorce involves property division and the valuation of a business as a marital asset. I will assist you in the business valuation process, by matching you with the most qualified and talented forensic accountants in the area who are very experienced in handling divorce for business owners.

Business Debt in a Divorce

You may be wondering what's going to happen with any business debt. If your business is considered marital property, business debt becomes marital debt to be split equitably along with the business as an asset. There are numerous ways to resolve this issue and I can help you address the options available to you.

Protecting Your Goodwill

Once you gather clients that trust and appreciate the services your business provides, this goodwill can suffer during a divorce. I consider this valuable asset and other intangible benefits

Dividing Your Business and Taxes

Another business-related matter to consider in divorce, are the tax consequences when dividing a business. If your business is an asset you will be keeping, you'll be taxed on it and having a plan in place can save you hassles later. Many business owners have little interest in wasting time on petty divorce litigation. Call me for a free evaluation (831) 459-6718You have assets, equity and a sensibility to get the job done without the need for the back-and-forth drama that can often happen in a traditional divorce process. While I am fully prepared to handle matters for you in court, I also offer a collaborative law approach to divorce where you work together as partners with a vested interest in what is best for each other, the family and your business.

If you have concerns about how a divorce will impact your hard-earned business, it pays to seek legal counsel committed to finding solutions that fit your needs.

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Contact information

Image of the Law Offices of Robert Frandeen
4630 Soquel Drive
Soquel Financial Bldg.
Suite 5
Soquel, CA 95073
Phone: (831) 459-6718

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