QUESTION

My husband is sole owner of an S corp which he had before we married. What are my rights?

Asked on Dec 06th, 2014 on Divorce - Virginia
More details to this question:
Is an S corp considered marital property after 10 years? Husband owns 3 houses in his name, 1 purchased before marriage, 1 during the marriage. He also owns a house and land which is in the business name. What rights would I have? It was a ten year marriage.
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1 ANSWER

Family Law Attorney serving Tysons, VA
1 Award
I think the question requires more facts to answer and I’m not sure the answer is going to be clear-cut.  I can see persuasive arguments on both sides.  But I think the answer is that the S corp in Husband’s name alone, that he came into the marriage with, remains his sole and separate property.  By virtue of the fact that he kept it separate during the marriage, and didn't include you as an officer or director, manifests his intent to keep the asset separate, just as a bank account would remain separate if there was no commingling of funds.  If you worked for the company and were paid a salary, then that is all you are entitled to.  If you worked for the company without compensation, that might raise an issue.  But I think more likely, it will be considered Husband’s separate asset, but any income he receives from it would be includable for spousal and child support purposes. This answer is given in accordance with the laws of Virginia and may not be applicable in any other state.  It should not be construed as legal advice, as that would require a more thorough analysis of all of the facts involved in a specific case.  If you need further information or assistance, please feel free to contact my office for a consultation. Case results depend upon a variety of factors unique to each case. Case results do not guarantee or predict a similar result in any future case.
Answered on Dec 20th, 2014 at 9:09 AM

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