San Diego Divorce Attorneys Blog
The Role of Prenuptial Agreements in Protecting Family-Owned Businesses in California Divorces
In California, divorce proceedings can have significant impacts on family-owned businesses. The state’s community property laws dictate that marital property be divided equitably between both spouses. If both parties cannot agree to the division of a family business, the courts may get involved and order that the business be liquidated.
For business owners, a prenuptial agreement can offer critical protection by outlining ownership rights and ensuring the continuity of the business. These agreements, drafted before marriage, address key financial arrangements and serve as a safeguard against potential disputes.