To what is a spouse entitled in divorce if husband owns one half shares of an incorporated company and is an officer in that company?
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To what is a spouse entitled in divorce if husband owns one half shares of an incorporated company and is an officer in that company?
To what is a spouse entitled in divorce if husband owns one half shares of an incorporated company and is an officer in that company? Company is not publicly traded and corporation is a partnership
Asked on May 21, 2009 under Family Law, Tennessee
Answers:
B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney
Answered 15 years ago | Contributor
If your husband owns half of a business, that is an asset (usually), and it is treated the same as any other asset, although placing a value on the asset is where the real issues usually come up. You definitely need a lawyer on your side in this situation, and one place to look for qualified counsel is our website, http://attorneypages.com
Like any other asset, an ownership interest in a business, whether it's a partnership, shares of stock or membership in a LLC, may be either marital property or not, and if it is marital property, then it is included in the property division, although it's often more or less automatically put into the share of the spouse that participates in the business, if only one spouse is involved.
When the company's stock isn't publicly traded, it often takes expert testimony to place a value on the business, and that means going into the company's books, etc. When it's part of a divorce, this is often the biggest issue in the whole case.
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