CALIFORNIA FAMILY LAW
...Business Interests
......Covenant Not to Compete
9 Cards On This Topic:
  • Noncompetition agreements void except where authorized by statute.
  • Limited covenant not to compete permitted as part of sale of goodwill of business.
  • Covenant not to compete authorized by statute.
  • Covenant not to compete upheld, without payment of goodwill.
  • Public policy affirming one's right to engage in a business of his/her choosing does not trump family court's authority to issue ••any orders••—specifically noncompetition order—to achieve an equal division of marital property.
  • Court may do valuation based upon seller's giving covenant not to compete.
  • Court may permit spouses who jointly operated business to compete with each other using similar name.
  • Postseparation payments from "play or pay" contract are s/p.
  • Effect of covenant not to compete on valuation of business.