Community Property
California's default property regime for married couples: anything earned or acquired during the marriage belongs equally to both spouses. A business started or grown during the marriage is presumptively community property, even if only one spouse runs it. This is the central issue in business-owner divorce.
Where This Matters
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Enterprise Value (EV)Seller's Discretionary Earnings (SDE)EBITDA MultipleQuality of Earnings (QoE)Add-BacksDue DiligenceLetter of Intent (LOI)Holdback (Escrow)Earn-OutAsset SaleStock Sale (Equity Sale)GoodwillPersonal GoodwillSeparate PropertyPereira MethodVan Camp MethodTransmutationBuy-Sell AgreementShotgun Clause (Russian Roulette Clause)Right of First Refusal (ROFR)View all →