What happens to the business during a divorce?
If the business was started during the marriage and there are no agreements in place altering the ownership or the division of Community PropertyThis is property that belongs equally to both spouses. It includes any property, asset, or liability either party acquires during the marriage with the exception of property acquired by gift or inheritance. Parties can opt out of community property laws with a prenuptial…Read more about Community Property and it is deemed community property, it is subject to equal division between the parties. Under Arizona law, it does not matter whether a spouse’s name is on the business because it was started during the marriage, therefore it is part of the Community PropertyThis is property that belongs equally to both spouses. It includes any property, asset, or liability either party acquires during the marriage with the exception of property acquired by gift or inheritance. Parties can opt out of community property laws with a prenuptial…Read more about Community Property and needs to be divided as part of the divorce proceeding. There are a few exceptions: Where the business was inherited or gifted to your spouse or where or a prenup or postnup is in place, then the business may not be community property. If the business was started prior to the marriage, most likely, the business will not be divided in the divorce, but the increase in value and/or IncomeAs defined by A.R.S. § 25-500(6), “any form of payment owed to an individual, regardless of source, including wages, salaries, commissions, bonuses, workers' compensation, disability payments, payments pursuant to a pension or retirement program and interest.” See also child…Read more about Income received from the business will be equitably divided.
