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Last Modified on Jan 05, 2026
Starting, owning, and running a business is a major accomplishment for many people, and any threat of losing all you have accomplished can be devastating. Divorce can be one such threat to all you have built. If you are facing the loss, liquidation, or splitting of your business due to a divorce, we are here to ensure you understand the impact of business ownership on your divorce.
Andy Cook is a Certified Family Law Specialist (CFLS) and can help guide you through the process to avoid costly or time-consuming mistakes.
Business Divorce Laws in San Diego
In California, assets in a divorce fall into two categories—shared and community property. Community property is considered any assets that were earned or obtained during the course of your marriage. It is important to note that any assets acquired only by one party through gifts or inheritance are not subject to community property unless otherwise outlined in a marriage agreement.
Separate property is any assets individually owned by each party prior to marriage. Sometimes, a business might be started before marriage, but over the course of the marriage, it might become more profitable. In these cases, the business could be considered commingled. In this case, an experienced business divorce lawyer will be able to navigate your divorce case to serve your and your business’s interests.
Options for California Business Owners
Going through a divorce and facing struggles surrounding your business can sometimes feel isolating. It is important to remember you are not alone. While the divorce rate dipped during the COVID-19 pandemic, in the United States, the estimated divorce rate is 2.4 per 1,000 people. You are not alone.
The first step you should take after filing for divorce is to get a valuation of your assets. Valuation will determine how to split any community assets in a divorce. This ensures a fair, not always 50/50, split and will help determine other payments such as alimony or child support. Common methods used in valuation are:
- The income approach estimates the value based on future earnings projections.
- The market approach compares the assets to the value of similar assets.
- The asset-based approach calculates the assets minus any liabilities.
Typically, there is a combination of methods used as business divorce cases tend to be unique to the parties involved and need nuance to decide the optimal outcome for all involved. If your business and assets are valued at $1 million or more, you might be facing a high asset divorce and will have extra care taken every step of the way.
Every divorce case carries a variety of personal, financial, and complicated issues that our Andy Cook Law business divorce attorneys are equipped to handle.
Every Business Is Unique
There are a number of complexities in business ownership and divorce that make valuation critical to a fair outcome. The ways to ensure you are protecting your business, especially when facing or going through a divorce, are to:
- Keep detailed and dated financial records. Key considerations are the dates the business was established, earnings records, and statements showing from which accounts (private or shared) investments were made.
- Hiring strong legal representation to build your case.
- Working with your business divorce lawyer to get a valuation of your business.
- Negotiate with the other party and the litigation teams. While valuation can help steer the negotiations and court rulings, you and your legal team are still the strongest advocates for your business and a fair deal.
As a business owner and entrepreneur, professional legal guidance, along with your asset valuation, and following these steps carefully, are your tools for protecting your future.
FAQs
How Does Owning a Business Affect Divorce?
In a divorce where major assets, such as businesses, are held by one or both parties, there could potentially be more complications. Depending on when the business(es) were started, it might be considered community or separate property. Your business divorce lawyer will help you determine the valuation of your business and, if it’s deemed community property, or if it has significantly increased in value over the course of the marriage, will help you decide how to proceed.
What Are the Four Behaviors That Cause 90% of All Divorces?
The four common behaviors observed in many divorce cases refer to Gottman’s four horsemen of divorce and are criticism, contempt, defensiveness, and stonewalling. These four behaviors can cause tension, conflict, and a negative environment long before a divorce is ever filed. When one or both partners don’t feel respected, cared for, or safe in a relationship, it might erode the bond over time. This is not to say that these behaviors mean issues cannot be fixed.
What Is the Biggest Mistake During a Divorce?
The biggest mistake people often make in cases of divorce is letting their negative emotions drive the narrative. Seeking revenge or acting in anger through mediation, negotiation, or the court process can add undue stress and even lead the court to view the party as uncooperative. The optimal way to avoid emotionally taxing or costly mistakes in your divorce is to hire the guidance of a San Diego divorce attorney.
Does Your Wife Get Half of Your Business?
California is considered a community property state, meaning assets acquired through the course of the marriage are considered equally shared between partners. If a business was started prior to the marriage and did not become exceptionally more valuable over the course of the marriage, your ex-partner is not entitled to half of your business. A San Diego business divorce lawyer will help you build a case to protect your valuable assets.
Hire a Business Divorce Lawyer
Whether big or small, owning and running a business is a worthy life achievement. Do not let a divorce upend all you have worked for. Trust a San Diego business divorce lawyer to fight on your behalf and the legacy you have worked so hard to build. Our team is comprised of attorneys who have a combined 53 years of experience in divorce law and are prepared to handle each case with the care and attention you deserve. Contact Andy Cook Law today to find out how we can help.
