When one or both spouses own a business or professional practice, divorce can become significantly more complex. Unlike bank accounts or real estate, businesses are not easily divided — yet they are often among the most valuable assets a couple owns.
At the Law Office of Stuart E. Bruers, based in Torrance, California, and serving clients throughout Los Angeles County, Orange County, the South Bay, and the San Gabriel Valley, we help business owners and their spouses navigate these challenges with careful planning and experienced advocacy.
Is the Business Community or Separate Property?
The first question courts address is whether the business is community property or separate property.
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A business started during the marriage is generally considered community property, even if only one spouse was actively involved.
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A business owned before marriage may be separate property, but any growth in value during the marriage may still be partly community property — especially if marital effort or funds contributed to its success.
Courts often examine how much of the business’s value resulted from the owner’s labor during the marriage versus passive factors like market conditions. At the Law Office of Stuart E. Bruers, we work with financial experts to ensure this distinction is accurately analyzed.
Valuing a Business or Practice
Before a business can be divided, it must be properly valued. This often requires a professional valuation that considers factors such as:
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Revenue and profit history
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Assets and liabilities
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Industry trends
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Goodwill and reputation
For professional practices — such as medical, dental, legal, or accounting practices — valuation becomes even more nuanced. Courts distinguish between enterprise goodwill, which may be divisible, and personal goodwill, which is tied to the individual’s reputation and future earning capacity.
Judges in Southern California courts such as Torrance, Long Beach, and Pasadena rely heavily on expert testimony in these cases, making accurate valuation critical.
How Courts Divide Business Interests
Because courts cannot realistically split a business in half, they typically use one of the following approaches:
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One spouse keeps the business, while the other receives an offsetting share of other marital assets
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A structured buyout, where the business-owning spouse pays the other over time
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Sale of the business, though this is less common and often avoided when the business is the primary source of income
Our firm focuses on solutions that allow businesses to continue operating while ensuring a fair division of marital value.
Protecting the Business and the Owner
Business owners often worry about disruption, loss of control, or exposure of sensitive financial information. With more than 30 years of family law experience, attorney Stuart E. Bruers understands these concerns and works to minimize disruption while protecting both the business and the client’s long-term financial stability.
Take the Next Step
If you or your spouse owns a business or professional practice and you are facing divorce, contact the Law Office of Stuart E. Bruers today. We represent clients throughout Torrance, Redondo Beach, Long Beach, Beverly Hills, Pasadena, and across Southern California, providing strategic guidance to help you protect what you’ve built and move forward with confidence.