A New Year, Divorce and Your Small Business

 January is the month of renewal – closing the door on the negativity of the prior year and planning for the challenges of the New Year. Many commit to weight loss, exercise, or stopping smoking at the start of a new year as an opportunity to make improvements in their lives. On the other hand, some people use the beginning of a new year to make new personal beginnings, often which includes a change in one’s marital situation.
When going through the divorce process, marital assets and debts will generally be divided between the parties. Some people prior to marriage may have entered into a premarital agreement that define support obligations and division of assets and debts in the event of divorce or separation.
If you are contemplating marriage, our office does prepare premarital agreements and post-marital agreements. Some spouses are unable to agree in advance to the division of marital property, which can lead to contested litigation. Also, some parents are unable to reach parental custody and visitation agreements during the dissolution process. Child custody issues can become expensive and time-consuming.
For those spouses who own a business, getting divorced and reaching a fair division of the marital estate can be even more complicated. A business entity may be a community asset subject to valuation and division at the time of dissolution. The first step in dividing a marital estate that contains a business entity involves establishing when the business was started. If it was formed prior to the marriage, the characterization and community interest of the business depends on many factors which will require the analysis of an attorney familiar with this area of the law.
If you are considering a divorce or have been served with divorce papers, contact an experienced divorce attorney, especially if you own a business. The decisions you make during this process could impact not only your personal financial freedom but also your business’s bottom line.
You need to know what will be considered in the final division of the marital assets and debts and especially if the business is part, or in whole, a community asset.
For more information and to schedule your free consultation, please call The Law Offices of Steven B. Chroman, P.C., at 661-255-1800 or visit us at www.chromanlaw.com. Mr. Chroman is a Trusted Advisor Award Winner and named Top 100 California Attorney’s with over 20 years of experience and local service. You can purchase Mr. Chroman’s best-selling Divorce Workbook at: www.amazon.com/Preparing-Divorce.