Rancho Cucamonga Business Division Lawyer
There are a few rules to running a successful business. Many of which are in place not just to help you keep your business organized, but to also keep you at least a step ahead of your competition.
Unfortunately, this means planning for the division of a business entity that might have been built between two people, who are now divorcing.
However, even with all the planning in the world, the division of business entities is a long and complicated procedure that requires the assistance of a professional who has experience.
It’s best handled by a division of business entities lawyer in Rancho Cucamonga who has seen many businesses come and go due to divorce and other circumstances.
Business as a Marriage Asset
Regardless of the fact that it is a business, if it was created and built during your marriage, it is still an asset of the marriage.
When it comes to dividing this asset, it has its own details to consider. You’ll need to address the debts and assets of the business itself in order to legally divide the business entity between you and your spouse.
If you decide to close the business, then all accounts need to be settled before the remaining value can be properly assessed.
Otherwise, its current value, with all creditors, debtors, inventory, and projected value will need to be determined and split between both parties in the divorce.
Opting Out of an LLC
If the business is a Limited Liability Company or LLC, you might choose to end the business and transfer the holding to another company as part of the distribution of assets and debts, or one of you may choose to completely opt out.
If the business is left open, then the party who chooses to opt out will usually receive the value of their share of the business.
However, should this occur, the value received by one spouse, as well as the remaining spouse’s value of the business, is considered when it comes to the division of community property.
This is the most common practice when there are other owners involved in the business aside from the married couple.
Dividing Business Debts and Assets
During divorces in California, debts and assets of the marriage are equally split between the two parties. This becomes even more difficult when you throw in a business entity that likely includes varying types of debts and assets that aren’t always tangible.
For instance, the division of business entities requires gathering all the company’s debts from creditors, interim distributions, liabilities, or even taxes.
People who have invested in the business will require reimbursement or compensation for the amount they have put into the business.
Even your business assets are difficult to assess because you can’t just consider the inventory you have, but the taxes and fees required to maintain inventory.
The entire process is complicated and is best handled by the professionals at The Law Office of Laurence J. Brock.
You Need a Rancho Cucamonga Business Division Lawyer
Because you have been at least a part of running the business, you might feel confident enough to try and manage the division of the business entity on your own, or continue to maintain the business with your soon-to-be ex.
Not only is this foolhardy, it may not even be possible. In order to dissolve a business, you have to end its liability through the courts. It is the only way to divide the business with the certainty that everything is finalized in a legal manner without risking negative consequences later on.
If even one account is omitted or mismanaged, you could be held responsible long after your marriage is finalized.
Managing a business that was established and built with a person you are no longer married to can bring its own set of problems in the future.
The safest option is to contact a Rancho Cucamonga Business Division Lawyer to be sure the business is either dissolved or divided fairly and legally.
If you are considering a divorce and a business is involved, you need Laurence J. Brock’s experience and expertise to ensure that the business entity is divided or dissolved legally. Contact our office online or call us at (909) 466-7661 immediately.