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For some people in California, the end of a marriage can mean the end of a business. However, this does not have to be the case. The couple may agree to sell the business, but having one person keep it or even continuing to run it are also possibilities.
If the couple decides to sell the business, they need to agree on several things. They should agree on a minimum price so both are starting from the same point of negotiation. They should also draw up terms. Waiting until they can get the best price possible for the company might not be possible if they need the money or if they simply do not want the divorce to drag on for too long.
A person who has the cash to do so can buy the other out. If the cash is not on hand, some couples may agree to a payment plan although this may not be an option financially for one or both parties. For some businesses, it is necessary to have both individuals on hand to run it because of the roles they play in the company. If this is the case and the divorce is amicable, they might decide to keep the company. This could require some restructuring of the business, and one person may take a smaller role.
Since California is a community property state, each person may be able to claim half of a company even if only one individual owns it. This may be case with other property acquired after marriage as well, including the home, retirement accounts, and other investments. However, , people might be able to negotiate a divorce settlement agreement that is more flexible. One advantage of negotiations over litigation is that it gives the couple this control.
We represent clients in Orange County and Southern California in all types of family law matters involving divorce, mediation, property division and issues involving children. Call our Fullerton office at 714-680-9777 or use our online contact form to schedule a free consultation. We ensure a 24-hour response to all inquiries.
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