QUESTION
If you filed for divorce and it is an active case, can you start a business and it not be marital property?
Asked on Sep 10th, 2013 on Divorce - Michigan
5 ANSWERS
Divorce Attorney serving Bloomfield Hills, MI
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Catchick Law, P.C.
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Technically, until the Judgment of Divorce is signed by the Judge, you are still "married." However, the fact that you started the business AFTER there is an active divorce case pending definitely helps you. However, if you used "marital funds" to start the business, that may drag the business back into the marital estate.
Answered on Sep 12th, 2013 at 4:53 PM
Family Law Attorney serving Thousand Oaks, CA
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Law Office of Terry A. Buchanan
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The answer depends on the source of funds used to start this business after your date of separation.? Generally, any asset acquired after your date of separation is that person's separate property (and thus not marital property)? If you start the business with monies maintained in bank accounts (accumulated during the marriage) then the business would have a community property interest to it even though begun after date of separation.
Answered on Sep 12th, 2013 at 4:53 PM
Alternative Dispute Resolution Attorney serving Ventura, CA
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Zahn Law Office
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If you are separated, then the community has terminated, however you risk using community property funds on a separate property venture, which can create reimbursement rights.
Answered on Sep 12th, 2013 at 4:53 PM
Chapter 7 Bankruptcy Attorney serving Salt Lake City, UT
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Linda D. Smith, P.C.
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If you have been physically separated for a period of time and you start a business without using any marital property, and your ex doesn't contribute anything to the business, then you should be able to claim the business as your separate property. I can only provide an opinion based on the few facts received.
Answered on Sep 12th, 2013 at 4:53 PM
Yes. You established a date of separation when you filed for divorce. The asset post separation is separate property.
Answered on Sep 12th, 2013 at 4:53 PM