After the end of a marriage, one of the most complex issues both parties need to resolve is property division. California is a community property state, meaning all marital assets are divided between spouses in equal proportions. The same rule of community property applies when one spouse owns a business; that business is also subject to equal division at the time of divorce. In fact, it is a managing spouse's duty to disclose all matters pertaining to the business to his or her spouse.
Many Orange County residents who operate a business know that family-owned businesses enjoy certain tax exemptions. However, after divorce these exemptions are considered income and as a result, become taxable. In order to address such issues, advisors can determine the value of the family-owned business and help evaluate the monthly income generated by it. Determining the income is also important for various other divorce legal issues such as child support and spousal support.