Las Vegas is a very entrepreneurial city and as such, many families here own a business.  Whether a business was started prior to marriage or subsequent to marriage has many far reaching consequences.  If a business was started during marriage, the business would most likely be entirely community property unless there was pre-nuptial agreement or the money used to start the business was borrowed.

If, however, the business was started prior to marriage, there would be a separate property interest in the property and possibly a community property interest.  Whether a community property exists depends on the type of business and the amount of labor the spouse owning the business put into the business during the marriage.  To value the community property interest, the courts, in most instances, will allocate to the separate property a reasonable rate of return on the original capital investment.  Any increase above that reasonable return amount would be community property.  This is known as the Pereira approach.

The courts also can also deduct from the total income or increase in value of the business, the amount of reasonable compensation received by the owner of the property for his services rendered.  That amount represents the community interest.  This is known as the Van Camp approach.

Also, a very important step is to value the business.  Business valuation is a very complex area of finance which most attorneys in town do not fully understand.  With Mr. Lin’s MBA and real world merger/acquisition experience, the firm can adeptly guide you through the Family Court process to value and divide your family business.

The attorneys at Lin & Associates (702-DIVORCE) are ready to ensure that your rights under Nevada law are fully protected.