When spouses make the decision to end their marriage, it sets in motion a whole host of processes that must be completed in order for the ultimate dissolution to be achieved. In the majority of cases, the process that involves dividing the marital estate is a relatively simple matter whereby the estate’s assets and liabilities are applied to the rules of community property, which govern divorces in California.
However, there are cases where this solution is far from simple, and one of them involves the existence of a small business that’s owned by one of the parties to the divorce. Small business owners are generally not paid a salary with the typical tax deductions that one would find on an employee’s pay stub. Even if a small business owner pays him or herself a basic salary, the law states that the entire value of the business must be quantified so that the assets can be divided properly between the parties. Contact our San Diego business protection attorneys for help with your case.
Basically, there are generally accepted practices that are in place to place the proper value on a small business, and these processes are usually much different than those accounting methods that are used to complete a valuation on a publicly traded corporate entity. Aside from the business’ cash assets and other items of value, there are executory contracts that can be in place and other, less tangible assets that need to be accounted for in some way in order for a valuation to be accurate.
When you work with the Law Offices of Scott & Matteson Family Law, you’ll soon understand that we’ll work diligently to make sure that your small business is valued properly so that the ultimate property division is fair. This usually involves the use of expert accountants who work with specific equations and other methods that are spelled out in commonly held accounting practices.
The reason we’re so thorough in this process is because we want to be sure to avoid any potential problems that could arise with this valuation. When disputes arise during a divorce that involves the overall value of a marital estate, the entire situation can devolve into a lengthy, stressful, antagonistic and ultimately costly battle.
If you are facing the prospect of a divorce that will include the division of property involving a small business, you need to work with a law firm of San Diego divorce lawyers who are experienced in protecting your business, efficiently and clearly. Contact us today for a free consultation at (858) 974-4900.
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