QUESTION
Will small business be considered community property if I file for divorce?
Asked on Dec 03rd, 2013 on Divorce - Idaho
More details to this question:
I've been married 11 years and have a small licensed day care, and my husband has a small tile company. I rent the building for my day care and pay all the bills, and everything is in my name. And due to his record, he is not allowed to have anything to do with my daycare. My husband has his tile company which I am not involved in at all. He does his own thing. He doesn't have a building he pretty much works out of his truck (which was repossessed). He is a drug user and very verbally abusive. He does little side jobs, nothing big, and his business isn't very successful due to his drug use. I'm worried if I file for divorce, he will get half of my successful business. Will it be considered community property, and how could I change that?
8 ANSWERS
Dispute Resolution Attorney serving Seattle, WA
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Law Offices of Helene Ellenbogen P.S.
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Your business is community property as is his. You can't change that now. However, it is only the values of the businesses (assets) that get divided. I doubt your business has a great deal of monetary value and there is no doubt each of you would be awarded the business you run since it is your livelihood. Along with the business you will also get any debt associated with the business.
Answered on Dec 05th, 2013 at 7:50 PM
Business Law Attorney serving Bingham Farms, MI
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James T. Weiner, P.C.
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Generally in Michigan your small business would be considered marital property and subject to division..as would his tile business. However, the question is what are they worth? If you chose to not support the day care your business would be worth next to nothing so it may have a very tiny value that would be subject to splitting. I'll bet it might even be a negative since you have a lease.
Answered on Dec 05th, 2013 at 7:49 PM
Yes, the businesses will considered community property during the period of the marriage. You might want to consider Mediation as a way to divide the businesses assets, etc.. Mediation is Fast, Effective and Affordable. Both of you will have to agree to mediation before it can happen, but that might be the best path for you, and avoid the Court making the decisions. Good luck.
Answered on Dec 05th, 2013 at 7:49 PM
Social Security Disability Attorney serving Melbourne, FL
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Law Office of Robert E. McCall
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1. Florida is not a Community Property state. 2. Each party has an interest in the others business. Cannot state the exact interest without knowing how each is organized.
Answered on Dec 05th, 2013 at 7:49 PM
Bruce Provda
Businesses are in general part of the marital assets. You need a divorce attorney to help with dealing with the finances between these two companies.
Answered on Dec 05th, 2013 at 7:48 PM
Domestic Relations Attorney serving Omaha, NE
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Diane L. Berger
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Anything that was acquired during the marriage is marital property, no matter how it is titled. With the information you have provided, I don't think your business would have very much value, save and except the income it provides. Again, with the information provided, he business would have little value, save and except income.
Answered on Dec 05th, 2013 at 7:48 PM
Mediation Attorney serving Bloomfield, NJ
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Cassandra T. Savoy, PC
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All assets beneficially acquired during the course of the marriage are subject to equitable distribution. If you did not work and he had a pension, you would be entitled to a portion of the pension. Both businesses are subject to equitable distribution as are all of the marital debt.
Answered on Dec 05th, 2013 at 7:47 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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You can't change it now; it is what it is. I don't know if it is community property. Part of me says of course it is; however, you owned it separately and he had no part in it. To the extent you used community money to in the business, half of that may need to be paid. You really need to talk with a local attorney and go over all of the issues with him or her. It may be possible to enter into a post-nup agreement where he agrees that your business is yours and his business is his.
Answered on Dec 05th, 2013 at 7:47 PM