WHAT RIGHTS DO I HAVE IN MY WIFE'S BUSINESS?

I frequently receive questions from people regarding their family law issues. The following is a question which the inquirer agreed may be publicly revealed, and my answer to the question:


QUESTION: What rights will I have in my wife's business if she divorces me? My wife has a business in her name but I gave her money to start the business. We also file taxes together. If my wife divorces me, what will my rights be in the business?


ANSWER: If the business was started during the marriage, it will likely be treated as a community business by the divorce court unless you entered into a separate property agreement with your wife whereby you and she agreed that the business is her separate property - but in that case, you may be entitled to reimbursement of your share of the community property investment into that business, or if the funds used to start the business were your separate property funds (i.e., funds that you had before the marriage or that you received by way of inheritance, trust distribution or gift), you may be entitled to reimbursement to the extent that you can trace those funds to a separate property source.

The business should be valued by an expert forensic accountant, to determine its cash flow (for support purposes), your community share in the business, and to trace community and/or separate property contributions made to the acquisition of that business in case the business is held to be her separate property.

Given the issues involved in your divorce and their compexity, you should retain an experienced Family Law Attorney to represent you in the divorce.


This educational blog is brought to you by DONALD F. CONVISER, a Los Angeles Certified Family Law Specalist, owner of Warner Center Law Offices in Woodland Hills in the San Fernando Valley, an effective and aggressive Los Angeles Divorce Lawyer serving clients in the courts of Los Angeles and Ventura County for over 35 years, offering a free confidential consultation regarding your divorce or family law issues, at 818/880-8990, www.conviser.net