Dividing Businesses or Business Interests in a Dissolution

Dividing Businesses or Business Interests in a Dissolution

Menlo Park Business Dissolution Attorneys

In a dissolution, 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 have been running a business together for some time, dissolving the business 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 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.

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 Menlo Park family lawyers represent individuals facing business division issues throughout Northern California.

At Flicker, Kerin, Kruger & Bissada LLP, we assist men and women 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 they believe is fair, which can make property division all the more difficult. We would be happy to assist you with your case at our office locations in Menlo Park and San Ramon.

Awards

Over the years, Flicker, Kerin, Kruger & Bissada LLP has cultivated a reputation for excellence in the legal field. With a focus on complex and high-asset cases, we provide innovative legal strategies for our clients - always placing their best interests at the forefront of each legal matter. In addition to the gratitude of our clients and the respect of our legal peers, our firm has garnered the attention of many prestigious legal organizations.