Where a spouse is a sole proprietor or owns an interest in a business entity there is a value to that ownership interest. If the value of the business was acquired or enhanced during the period of the marriage, the community has an interest in the present value of the business. For example, if the business has no monetary value if you exclude the spouses contribution to it, that business must nevertheless be included as a community asset at its present value. If one or both spouses are sole owners of a business or professional practice, this will often be the most significant community asset to be dealt with. If a spouse or the husband and wife together own a partial interest in a business with other owners, that interest must be valued and included as an asset to be divided on dissolution.
Valuation is the most difficult issue with regard to business interests.
Often, one spouse runs the business and the other has little knowledge of what is going on in the business. This presents a real problem upon the division of assets in trying to determine a fair market value for the business as a going concern. Have an independent accountant review the books of the business. You are entitled to get a copy of such records, especially where your spouse is the sole owner of the business. Beware of double books where there is one set of books for you and the IRS and another that reflects that actual operations.