The dissolution of a marriage can be tough to navigate both emotionally and financially. However, it can be especially challenging when a business is involved. Here is a look at what to expect during a high asset divorce involving a business venture in California.
Business partnership agreements cover a multitude of situations, but the dissolution of a marriage typically is not one of these. After all, when people form business partnerships, they typically do not contemplate getting divorced in the future -- that is, unless their partners are their spouses. The reality, though, is that their exes might have the right to receive shares of their businesses.
If a business owner who has a business partner decides to get divorced, the business owner's spouse might have the right to receive 50 percent of the business partner's stake in the company. If the venture was created during the marriage, the court will likely view this as marital property that must be split down the middle, particularly if the business owner's helped to run the business. If the company was created prior to the marriage, the divorce court will still most likely determine that the business owner's spouse should receive 50 percent of the company's appreciation in value.
A high asset divorce involving a business can understandably be complicated and overwhelming, as large sums of money are on the line. However, if two divorcing spouses can find common ground when it comes to the division of their property, they may be able to resolve this issue without further court intrusion. If they cannot do this, they have no choice but to proceed to trial to let a judge determine how their assets will be split in California.