QUESTION
If I own a company prior to getting married, could my spouse receive any of the income due to a divorce?
Asked on May 23rd, 2013 on Divorce - Michigan
7 ANSWERS
Unless the community has contributed to the business then the income from the business should remain your separate property. You should consult a family law attorney to review all of the facts and advise you.
Answered on May 24th, 2013 at 1:30 AM
This is not an easy one to answer. You need to meet with an experienced family law attorney in your area for a fully detailed answer. Short answer: Maybe. Depending on how much of your efforts went into the business during marriage, the community might have acquired an interest in the business for which you will have to buy out the other spouse's interest.
Answered on May 24th, 2013 at 12:32 AM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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Maybe. It kind of depends on how everything was handled. As a matter of course, any income from the business would be community property and, perhaps in increase in value. You need to talk with your attorney about it.
Answered on May 23rd, 2013 at 2:59 PM
Family Law Attorney serving Las Vegas, NV
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Law Offices of Webster & Associates
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A business you own prior to marriage is your separate property but the community can gain an interest in that asset post marriage. If the community gained an interest in the business during the marriage, then you can buy out that interest. This a complicated issue that you need to discuss with an attorney.
Answered on May 23rd, 2013 at 2:59 PM
Yes, (depending on your respective income levels and other factors) you could be ordered to pay spousal support to your spouse and the Court would consider all your sources of income, including income derived from a company that was entirely separate property. It is also possible that if a spouse during the marriage makes significant contributions to the growth and development of a company that was formed prior to marriage, it could be characterized as community property at the time of divorce. Again, this would depend heavily on the facts of the situation and most likely a forensic accountant would need to brought in to determine valuation.
Answered on May 23rd, 2013 at 2:58 PM
Divorce Attorney serving Frisco, TX
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Mackoy, Hernandez, Jones and Woods LLP
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Marital property law is too complicated to give you a specific answer. The answer depends on what form the business is (corporation, LLC, partnership, etc.), who holds title certificates or other documents of ownership, etc. I suggest you hire a lawyer.
Answered on May 23rd, 2013 at 2:58 PM
Business Law Attorney serving Bingham Farms, MI
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James T. Weiner, P.C.
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Generally no he would not be entitled to income from your company However, if you make substantially more than he does and he supports your working and you are married for a significant amount of time he might be able to get spousal support (alimony) if you divorce. So make sure he keeps working and does not become a stay at home dad or something like that. A prenuptial agreement may be a good idea if your assets are substantial.
Answered on May 23rd, 2013 at 2:57 PM