Depending on the type, breaking up a partnership can raise many issues. Divorce will almost always have a strong emotional element involved, but what happens when a couple build up a business together during the time of their marriage? California is a community property state, meaning that most property acquired during the marriage is owned jointly by both spouses, so many people may wonder how they can protect their investment of time, effort and money.
It is important to keep personal feelings separate from decisions relating to the business side. It may still be possible for both parties to continue as business partners if they can agree on working arrangements; but, even so, they may require some space from each other in which to make the adjustment. If they find it impossible to continue working together, then taking time to consider what each really wants to achieve can assist in knowing which way to turn.
Bear in mind also that what feels right at the beginning, may change further down the line. Giving oneself permission to change one’s mind at a future date can also be of great help in reducing the level of anxiety felt at having to make such life-changing decisions. Keeping a cool head can make the process seem less daunting.
Everything which affects the couple going through divorce will be analyzed and put into a context, whether it relates to business, personal, financial or the issue of what happens to the children of the marriage. Each aspect affects the others, but the proportions will be different. The California community property laws should assist in creating fair outcomes for both parties, especially if both spouses are armed with a solid knowledge of how those laws apply to their specific situations.
Source: entrepreneur.com, If You Run a Company Together, What Happens When You Divorce?, Kate Taylor, Feb. 25, 2014
