Legal Question in Family Law in California
My EX has S Corporation. What is my SHARE?
My EX Husband has 50% in "S" Corporation.
Business was established 7 years ago. There are 2 main shareholders - my ex and his partner. They have 6 employees and big office in Financial District. They provide consulting services in finances, banking, corporate law, etc. They have 2,000 clients and a lot of advertisement in press.
Now we are divorcing. What is my share in this "S" Corporation? How I can evaluate it?
Thank you.
2 Answers from Attorneys
Re: My EX has S Corporation. What is my SHARE?
If the business was set up during the marriage, all of the partnership share held by
your husband is community property. You have a 1/2 share of the community property. If the business,
or portions of your husband's contribution, predated the marriage, the community interest (and your eventual
interest) would be less.
You will definitely need a sophisticated business appraiser to value the business. Several methods are possible. With a
service business, the income of the business (and the number of repeat customers) would
be important considerations for estimating the "goodwill" of the business.
Jed Somit
Jed Somit, Attorney at Law
1440 Broadway - Suite 910
Re: My EX has S Corporation.
You may need to have an accountant evaluate the business in order to determine it's value before that question can be answered.
Ken Koury
Kenneth P. Koury, Esq.
5807 Topanga Cyn Blvd., Suite G-201
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