Once a business has been characterized and valued, the next question is: Who actually gets it?

In theory, California courts prefer to divide property equally and, when possible, in kind. But with businesses, dividing ownership is often impractical—especially when the parties are no longer on good terms.

As a result, courts typically award the business to one spouse and compensate the other with other assets or a financial payment.

In many cases, the business is awarded to the spouse who operates it. This is especially true if that person has the skills, experience, or professional license required to run it successfully.

For example, a licensed professional—such as a doctor, contractor, or attorney—is almost always awarded their practice. The other spouse would receive compensation for their share of the value.

However, this is not always automatic. If both spouses are involved in the business and capable of running it, the court may consider other factors, such as management experience or long-term viability.

In some cases, the business may be sold, but courts generally try to avoid this if either party wants to keep it and can afford to do so.

Courts may also impose restrictions, such as non-compete orders, to protect the value of the business after the division.

Because businesses are often tied to a person’s livelihood, these decisions can have lasting financial and professional consequences.

Planning ahead and understanding your options can help you navigate this process more effectively.

Why speaking with an attorney helps:
An attorney can help you negotiate or litigate for a fair outcome, whether you want to keep the business or receive appropriate compensation. Legal guidance is essential to protecting both your financial interests and your future earning potential.