Property Division & Business Valuation
Property Division & Business Valuation in Los Angeles & Orange County
The Divorce proceedings in either the Los Angeles County Superior Court or Orange County Superior Court will first include a determination of what assets or liabilities are owned by either of the parties at the time of filing for divorce. Once all assets and liabilities are determined the Court will split the property based upon the community ownership percentage if community property or award outright if separate property.
Other Property Division Options:
If a specific item of property such as the family home cannot be split in kind the court may allow one of the parties to take sole ownership and to pay the other spouse their community interest based upon the market value. If neither party wishes to keep the family house the Court may order the family home sold and the net proceeds after sale divided in some equitable manner among the parties based upon their community interest.
These determinations may require further examination if one party owned the home prior to marriage or paid the mortgage on the home during marriage with community income. In either of these cases the Los Angeles County Superior Court or Orange County Superior Court would consider both the separate and community interests in the family home including any appreciation in value. All Property divisions in either Los Angeles County Superior Court or Orange County Superior Court will be based upon the characterization of the property as community property or separate property.
Community & Separate Property:
Community property is all property acquired during marriage with community property funds. Community property will be divided by either the Los Angeles County Superior Court or Orange County Superior Court on an equitable basis which most likely will be fifty percent (50/50). Separate property is all property owned prior to marriage or received by a spouse as a gift which is designated specifically as a gift to that party alone. Typically, separate property includes gifts or inheritances from family members. The complexity of the property division process is dependent upon the number of assets and the ability to accurately determination their fair market value.
Business valuations present unique challenges to determine their fair market value. If both spouse worked at the same business and that is their only source of income this may also affect the determination of spousal support because of the reduction in business income which may be caused by the loss of the spousal employee.
If the parties will be selling the business and neither party will be continuing to work for the business after the sale the determination of fair market value will be determined by the market price for which it is sold. If on the other hand one of the spouses will continue to work at the business after the divorce the determination of the amount required to buy out the other spouse can be complicated and subject to varying estimates. Business valuations of this type will require a detailed look at the financial structure of the business.
These business valuations will typically include a determination of the value of fixed assets, accounts receivable, accounts payable, goodwill, the type of business, the economic outlook, earning capacity, etc… Unless a settlement is reached the parties will likely need to hire an accountant, an expert at business valuations. The Los Angeles County Superior Court or the Orange County Superior Court will base their determination on the testimony of the experts.
Our Approach to Property Division
At the Law Office of Sam Walker, we provide zealous representation in a caring individualized manner. Your attorney will be available to you directly and you will not be forced to call a secretary or paralegal with your questions. You will have direct access to the attorney who will be handling your case throughout your property division matter. If you have any questions your attorney will respond to your call within 24 hours.
Counties We Represent:
Los Angeles County, Orange County and surrounding.