QUESTION
Does she have any say in the sale and If she files for divorce will this hold up the sale?
Asked on Apr 24th, 2013 on Divorce - Michigan
More details to this question:
My father owned a restaurant for over 40 years. He owned it prior to his marriage of 30 years. The business was bought and passed down to him by his father. His wife is refusing to allow him to sell. My father owned his business prior to marriage and wants to now sell. His wife does not agree but he owns 100% of the stock.
11 ANSWERS
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Best to contact an experienced family lawyer. Probably he can sell the property, but everything is very much fact-driven, and the lawyer you retain should be told every thing possibly relevant to the dispute.
Answered on Apr 24th, 2013 at 1:51 PM
Business Law Attorney serving Bingham Farms, MI
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James T. Weiner, P.C.
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Have your father get an attorney. Most likely If the restaurant and the land are 100% owned by a corporation and he owns the corporation its a business decision and she cannot affect the sale even if she files divorce. However that is a big "IF".
Answered on Apr 24th, 2013 at 1:50 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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If they are going through a divorce, there may be an order preventing the sale of assets. He might be able to get the court to allow the sale so long as the money received is put in escrow in case it is needed to pay the wife.
Answered on Apr 24th, 2013 at 1:48 PM
Family Law Attorney serving Peoria, AZ
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The Law Firm of Jessica M. Cotter, P.L.L.C.
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Your father should consult with an experienced family law attorney about these issues. Without an opportunity to review all the documents, and not knowing the status of any dissolution action which may have been filed, the general rule would be that property owned by your father prior to the marriage, or that was received by him as an inheritance will be considered his separate property. That being said, there are several possibilities with respect to his wife's ability to delay the sale. If there is an ongoing dissolution action then there is a preliminary injunction which prevents certain actions. Many other possible hurdles to the immediate sale could exist. Once again, there is no better advice than for him to consult with counsel.
Answered on Apr 24th, 2013 at 1:47 PM
Divorce Attorney serving Frisco, TX
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Mackoy, Hernandez, Jones and Woods LLP
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Property owned prior to marriage is separate property and the other spouse owns no interest in it. However, the form of the business is important in tracing ownership and there may be claims by the other spouse for reimbursement. Marital property law is complicated - it would be wise to hire a lawyer.
Answered on Apr 24th, 2013 at 1:47 PM
Litigation Attorney serving Charleston, SC
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The Falk Law Firm, LLC
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The issue is whether any portion of the business constitutes a marital asset. I would need to know more information, but it appears as though some percentage of the equity in the business would constitute marital property. I would assume that the restaurant had some value or equity on the date in which it was inherited. The value that the business had on the date it was inherited would be a non-marital asset. There may be a Family Court order in place that prohibits either party from disposing of marital assets, if so, the wife could easily prevent the sale. If there is no such order, the husband could sell the business, HOWEVER, he would have to account to the wife for that percentage of the proceeds that is considered a marital asset. A family court would make a determination of how much, if any, of the equity in the business constitutes a marital asset.
Answered on Apr 24th, 2013 at 1:46 PM
Divorce/Family Law Attorney serving Carlsbad, CA
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Anne B. Howard, A Professional Law Corporation
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He has the right to sell it with her agreement. They are married and so have joint management and control over assets. He owned it prior to marriage but worked it for the entire marriage. If she files for divorce the assets can't be sold until its disposed if by the court. If its sold she probably has an interest in the proceeds. Her interest has to be worked out by a business appraiser with experience in family law.
Answered on Apr 24th, 2013 at 1:46 PM
You may need to get an attorney to help sort this out. It appears that the business was inherited from his father which makes it his separate property. But how the business was handled after that that could have created a community property interest in the separate property. If it is sold before divorce is filed the proceeds might be contested as at least partially community property.
Answered on Apr 24th, 2013 at 1:45 PM
Family Law Attorney serving Los Angeles, CA
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Law Offices of Rosaline L. Zukerman, APC
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She should have no input as to his sale of this separate property business But if it is the only source of support for the family and if there was no prenup, his efforts in increasing the value of this asset could have a community property component.
Answered on Apr 24th, 2013 at 1:45 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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It is possible but highly improbable if there is a contract to sell it in place.
Answered on Apr 24th, 2013 at 1:44 PM
Divorce & Separation Attorney serving Menasha, WI
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Petit & Dommershausen, S.C.
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In Wisconsin, everything is considered marital in a divorce situation until or unless a court rules otherwise. To get it ruled otherwise, it needs to be inherited property that was kept separate from marital funds...ie nothing paid out of the marital funds, not comingled etc. This is way too difficult a question to answer without review all the documentation and fully assessing the situation. Your dad needs to sit down with a lawyer asap if he wants to sell; however, if they are not getting a divorce and his name is on the business, it is possible it can be done but again it is too hard to know from the limited facts presented.
Answered on Apr 24th, 2013 at 1:44 PM