Justin T. Miller recently published an Article entitled, Three Options for a Private Business in a Divorce, Probate and Property Magazine, Vol. 33 No. 2, March/April 2019. Provided below is the introduction to the Article.
As part of the marital dissolution process, spouses generally need to identify, value, and divide assets. For certain types of property, such as bank accounts, the process is fairly simple. But what do you do if the spouses have an ownership interest in a private business?
The first determination that must be made with respect to a private business in a divorce is whether the business interest is considered a marital asset or separate property. That determination depends upon whether the interest was owned prior to the date of marriage, the source of funds used to acquire the business, and the extent of financial contributions and personal efforts contributed to the business by either spouse during the marriage. Moreover, the analysis of marital versus separate property differs from state to state.
