What are Business Interests?
A business interest is, for our purposes here, buying and selling commodities, products, or services as a means of livelihood or simply for profit. We also include any income producing properties in this category. If during the marriage you or your spouse created or otherwise acquired any business interests, or if one of you supported the other (financially or otherwise) in building a business, then that business interest is subject to division in the divorce.
🤔 Understanding how Business Interests affect your divorce.
If you regularly buy and sell goods and/or services for profit, regardless of whether you “need” the money, regardless of whether your business is licensed, regardless of whether the business is a partnership, corporation, LLC, or some other formal organization, regardless of whether your report the income on your taxes, then you own “a business” or a “business interest” for our purposes in preparing your divorce documents.
Early on in their marriage, Sally decided that she wanted to start a home business so she could be at home with their children as they grew. Jerry supported her dream so they purchased inventory and marketing materials to launch her home business.
Now her business is doing very well so Jerry feels he deserves a portion of that company. Sally agrees so they settle on a fair value and she agrees to pay Jerry a portion of the profits until he’s paid in full. In return, Jerry has no claim on the company or future profits.