Legal Question in Family Law in California

You don't have to separate to have things separated. You can sign an agreement transferring all rights of the business to him. It must be in writing.

Also you could just incorporate the business and then neither one of you would be liable. Your finances will be considered separate property when you separate but your community property will remain community unless you agree to something else.

You have the common misperception that most lay people have that a legal separation is somehow different from a divorce. There is no difference except you are not free to remarry and you have not violated any religious or moral rules you follow against divorce. It basically exists only for people like devout Catholics and members of other faiths that prohibit divorce. It is not an effective or appropriate tool for insulating one spouse from the other's business liabilities when they otherwise want to remain married. Proper business planning, coupled with appropriate insurance, some separate accounts and accounting, and possibly a post-nuptual property agreement, are both simpler, less expensive and ultimately far more appropriate for protecting assets than a divorce or legal separation.