California Business Divorce Attorneys

Going into business with a partner is a lot like a marriage. When it works, it builds wealth and momentum. When it breaks down — over money, control, trust, or simply diverging visions — the fallout can threaten everything the owners built. A business divorce is the process of separating those owners and dividing the value of the company. For more than 45 years, Stone LLP has guided Southern California business owners through exactly these disputes, from Orange County and Los Angeles to San Diego, Riverside, and the Inland Empire.

The single most important thing owners on both sides of a deadlock should understand is this: you are usually not trapped. California law does not force a co-owner to stay locked in a company indefinitely. With the right strategy, an owner who wants out can compel a resolution — and an owner who wants to keep the business can often buy the other side out and move on.

What counts as a business divorce?

The term covers any serious dispute among the owners of a closely held business that ends the working relationship. The entity form changes the statutes that apply, but the human problem is the same. We handle business divorces involving:

Partnerships

General and limited partnerships governed by California’s Revised Uniform Partnership Act.

Limited Liability Companies (LLCs)

Member and manager disputes under the California Corporations Code.

Corporations

Shareholder, director, and officer disputes in closely held and family companies.

Joint Ventures & Family Businesses

Where personal and financial relationships overlap.

The two questions every business divorce has to answer

Strip away the emotion and almost every owner dispute comes down to two questions: Who keeps the business? and What does the departing owner get paid? California provides a powerful answer through the courts. An owner can petition for judicial or involuntary dissolution — a request that the court wind up and sell the company. That petition is the leverage. In response, the law typically gives the other owners the right to avoid the company being dissolved by buying out the petitioning owner at a value set through a court-supervised appraisal.

Corporations Code § 17707.03 — LLCs

A member or manager may ask the superior court to dissolve an LLC; the other members may avoid dissolution by purchasing the moving member’s interest for cash at fair market value.

Corporations Code §§ 1800 & 2000 — Corporations

A qualifying shareholder may petition for involuntary dissolution; the corporation or holders of 50% or more of the voting power may avoid it by purchasing the moving shareholder’s shares at fair value.

How Stone LLP approaches a business divorce

We are trial lawyers, but we are the first to say that litigation is often the worst way to resolve an owner dispute. Most business divorces should settle — and they settle faster and on better terms when one side is clearly prepared to win in court. Our approach is to build the leverage and the trial case from day one, then use it to drive a favorable buyout, sale, or separation agreement, turning to the courtroom only when the other side leaves no choice. We represent owners on both sides of these disputes: the departing owner who wants to cash out at a fair number, and the controlling or remaining owner who wants to keep the business and defend against an overreaching dissolution claim. From our Irvine headquarters and Century City office, we serve clients throughout Southern California.

Call 949-477-9100

Frequently asked questions

What is a business divorce in California?

A business divorce is the legal separation of the co-owners of a partnership, LLC, or corporation when they can no longer work together. It usually resolves through a negotiated buyout, a sale of the company, or a court-ordered dissolution under the California Corporations Code.

Can I force my business partner to buy me out?

Often, yes. By petitioning the court to dissolve the company under Corporations Code section 17707.03 (LLCs) or sections 1800 and 2000 (corporations), you create the conditions under which the other owners can elect to buy your interest at a court-supervised value rather than see the company wound up.

Does my partner have to agree to a business divorce?

No. California law allows a qualifying owner to seek dissolution or a buyout through the courts even when the other owner refuses to negotiate. The other side’s consent is not required to start the process.

Which Southern California areas does Stone LLP serve?

Stone LLP serves business owners throughout Southern California, including Orange County, Los Angeles, San Diego, Riverside, San Bernardino, and Ventura counties, from offices in Irvine and Century City.