Is my wife entitled to halfof my business?

Question

I am the sole owner of a franchise, and am currently going through a divorce. My wife wants half the value of the business, even though her name is not on it anywhere. Is she entitled to any of it since it is my only source of income?

Steven Burkhalter · Answer

The Court will make a fair and equitable division of assets/liabilities.

Jeffrey Pollock · Answer

There is no magic that states that she does or does not get half of your business. Has she filed a count for Equitable Distribution? Has she had  the goodwill, etc. of the franchise appraised?  Was it obtained during  the marriage? What was the amount of the increase in value during the marriage? It is legally irrelevant whether her name is on the business  except for a  forensic accountant appraising the importance of you and her respectively to the prospects of the business.

Glenn Tanner · Answer

Maybe. Courts don't look at single assets in a vacuum. They consider many  factors, all assets and debts, your financial futures, length of the  marriage,etc. My website discusses property division further. In short, the court divides all your assets  and debts in a fair and equitable manner after considering maintenance, child  support, if any,the factors mentioned above and what their gut tells them.  Whether the business is community or separate too matters. What the value of  the business is can be a major issue. Business can have value beyond their hard  assets and accounts receivables.

Paul J. Wallin · Answer

If the business was opened while you were married and you continued to operate it during the marriage then your wife will be entitled to 50% of the value of the business during the divorce. It doesn't matter that her name is not on the business. You have too much at stake to not be meeting with an experienced family lawyer now.

John Kirchner · Answer

Both you and your wife are entitled to a fair share of the total marital estate. The presumption is that everything you or she own now, regardless of whose name is on it, is marital unless and until someone proves that it is separate (based on having been owned before marriage or during the marriage by gift or inheritance.) There are no absolute rules as to what is "fair" but if you and your wife cannot agree onthe overall settlement, a judge will probably startwith a 50/50 approach. There is no requirement that each individual item be divided  it is the overall division that is measured as fair or not. How your business will be handled will depend on many factors, including what kind of business it is, what its value is, and what else there is to perhaps offset the value you want to keep. You need to discuss the situation with an attorney to evaluate potential options for a final property settlement.

Vincent Bernabei · Answer

If your business was acquired during your marriage, there is a presumption that it's net value will be divided equally on marriage.  To overcome that presumption, you must show that your wife did not contribute, directly or indirectly, to the acquisition of the asset. This is a complex area of the law, and if your business has generated a net profit, it is well worth it to retain an attorney experienced in domestic relations law to discuss the specifics of your case.  As in business, do not be penny wise and pound foolish.

Joanna Mitchell · Answer

If the business was acquired during the marriage with marital funds (money earned during the marriage), then it would be considered a marital asset subject to equitable distribution. It may be either partially or wholly a marital asset. You should consult with a family law attorney to assist you with the process and properly resolve any and all issues.

Jay Neff · Answer

First, some background on property division in a divorce.  If the two of you can agree on how to divide the property, then, the two of you can divide it just about any way you want.  However, if the two of you are unable to agree, then, it will be up to the court to divide the property and debts.  If the court is going to divide the property, it first has to classify it.  All of the property is going to be classified as your separate property, her separate property, or community property.  Which of these classifications a particular piece of property falls into will depend on how and when the property was obtained.  In most cases, property obtained during the marriage will be community property. Once the property is classified, how it gets divided will depend on a number of factors.  Some of the factors that the court may consider are:  the duration of the marriage, the ages of the parties, the health of the parties, the educational background of the parties, the employment history of the parties, and each party's future prospects.  The court then has to come up with what the court believes is a fair and equitable division of all of the property using these and other factors.  Now, as to your specific case: How the court is going to divide the business will depend on what other piece of property are available.  To illustrate, let's take a very simple situation.  Suppose that there are only two items of property - a house that has $100,000 worth of equity in it and a business that has $100,000 worth of equity in it.  In a situation like that, it would be very easy for the court to award one of you the business and the other party house.  However, the various issues that the court considers could skew the division one way or the other.  If the wife in our example had a much greater need than the husband, the court could give the wife the house and part of the value of the business.

Tina Fox · Answer

Not necessarily and not automatically. She can request it but certain factors must be in place before the courts will allow this to happen. You need to hire an attorney to represent you and protect your rights, assets, and business assets.

Patrick "Leh" Meriwether · Answer

Any asset acquired during the course of the marriage is subject to equitable distribution.  If you purchased franchise rights during the course of the marriage, then your Wife has a colorful claim to an equitable portion of the "value" of that franchise, regardless of whether her name is on the franchise or not.  It is important that you hire an experienced divorce lawyer to help you through this process.

Gregory Straub · Answer

In most situations, your wife would be entitled to a share of the calculated and negotiated business valuation.  The caveat would be if you started and owned the franchise before you were married and can prove that your wife did not provide any time or money toward this business.  However, the key to your divorce will be the negotiations in establishing your Marital Settlement Agreement.

Tajara Dommershausen · Answer

This is way too complex of an issue for this kind of forum, depending on the length of marriage, the state of the business when you got married ect there is a good chance she should get half.

Roianne Houlton Conner · Answer

The answer to this question depends on the lenght of the marriage and what your spouse contributed to the business.

Monica H. Donaldson Stewart · Answer

If the business was purchased during the marriage, she may be entitled to a share of the business (or to be bought out of her share) as part of the divorce. It wouldn't matter whether her name is on the documents or not. You might also want to review your franchise agreement to see whether it makes any provisions for what happens in the event of the death or divorce of an owner. I recommend you speak with an attorney to discuss your options more fully.

Patricia C. Van Haren · Answer

If you started the business during the marriage, your wife would be entitled to 1/2 of the value of the business. If you started the business prior to marriage, your wife would be entitled to 1/2 of the community share of the business.  There are several ways in which the court values a business particularly where the business consists of personal services.  You should contact a family law attorney who works with business valuation experts particularly if your business is valuable or there will be a dispute as to the ownership of the business.

Michael Fancher · Answer

Under Washington law, if the business was started during the marriage,  it would likely be treated as community property.  If that is the case,  generally the business would be awarded to you, but you would have to  buy her out by by giving her other property as an offset, or though a  payment plan over time.  Please consult with an attorney in your area  about your specific situation.

Christopher D. Hite · Answer

Depends on a lot of factors, but certainly possible.

James Lentz · Answer

Maybe.  Many factors come to play in dividing property.  In this case, did you start the business during the term of the marriage?  If so it will likely be considered marital property, and thus subject to division by the parties.  You say you are currently going through a divorce.  I hope that a successful businessman like you is not trying to represent himself.  That would be a huge mistake.  If you have domestic relations counsel, ask he or she about your options in negotiating a settlement.  If you are trying to represent yourself, get an attorney now.

Glen Edward Ashman · Answer

The good news: Over and over I see people with the misconception that divorces in Georgia are 50-50 divisions.  That is false.  Georgia does not have community property.  Now the bad news: Georgia does have equitable division.  The court can give her ALL your business, none of it, or any percent it deems just.  You have a complex legal situation and must get counsel.  A bankruptcy with a business requires a good lawyer.

David Goldman · Answer

if it was purchased with marital assets and you efforts while married improved the value then it will be considered a marital asset.  You should talk your divorce attorney to determine how it would be classified.

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