Is My Spouse Entitled to Half My Business?
When starting your own business, you may ask yourself, “Is my Spouse entitled to half my business?”
Starting a business can be a huge undertaking. And if you begin a new venture while married, there are certain rights that your spouse has to that business.
If the marriage does not work out, they have a claim to specific assets of the business.
In Nevada, there are laws that you must follow when it comes to community property and marital assets. This is important to consider when you own your business, especially if your spouse is with you when you begin the business.
You can also take steps to protect your business in the event of a Nevada divorce.
What is Community Property?
Nevada is a community property state. Each spouse gets entitled to 50% of assets and debts acquired during the marriage. During a divorce, the court will divide these assets between the couple.
You may wonder, “is my wife entitled to half my income?” In most cases, this is true. This pertains to income acquired during the life of the marriage. Depending on the court’s decision, you may get ordered to pay alimony and child support.
Exceptions include gifts, inheritances, or property covered by premarital agreements. A Las Vegas prenuptial agreement can ensure that your property will remain yours.
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Business Ownership During a Divorce
If my husband owns a business, do I own it too?
The answer depends on when the business started up. If your spouse began the company before marriage, they could claim it is a premarital asset.
Yet, if the business starts during the marriage, it becomes community property. This law applies even if your husband bought it without your input. Under Nevada law, you are still considered a partial owner.
Even if a business begins before marriage, it can still become community property. For example, if you contribute to the company’s growth, maintenance, or other aspects. In that case, you might be entitled to some or even half of the business.
What’s the best way to resolve the split of business assets?
Negotiating a property settlement and asset division is your best move.
With our help, you may be able to determine an acceptable division of business assets. If both parties cannot agree, a judge will decide the division of business assets. These decisions may be unsatisfactory.
So, is my spouse entitled to half my business?
There are three ways to divide business assets if you do not want a 50-50 split on community property.
The first result is one spouse buying out the other spouse. The buy-out could be in cash, either up-front or in payments.
It may also be on an asset basis. This option involves turning over property such as a home or other property to your spouse. In exchange, they give you their interest in the business.
The second option is to sell the business and share the proceeds. This option may include establishing a value for the property. Depending on how long this process takes, it may not be the most viable option.
This option will not be the fastest solution as it takes time to sell a business.
The final option can be for both spouses to continue as business partners. If the divorce is amicable, continuing to own and run a business together can be the best option.
This way avoids the need for a business valuation. Plus, you may include a 50-50 ownership in the divorce agreement. Yet, there is potential for issues if there are disagreements on business decisions.
Protecting Your Business
There are a few ways that you can protect your business and keep complete ownership.
If you own a business before marriage, you can sign a pre-or post-nuptial agreement. If there are provisions for business assets in them, your spouse may not get any of your business.
The court will review the agreements to ensure they are legal. If they do not, then community property regulations will get followed.
Seeking Professional Help
Is my spouse entitled to half my business? On most occasions, the answer is yes. But, as explained, there are options for you to protect your business, and we can help.
When it comes to the division of marital property, you need the help of a trusted divorce attorney.
We can help you navigate Nevada’s complicated community property laws. Call us at (702) 433-2889 today if you seek a prenuptial or post-nuptial agreement.
Frequently Asked Questions
What is separate property in a divorce?
Learn about separate property, which includes assets owned individually before marriage or acquired through specific means during marriage, and understand its implications in divorce proceedings.
What is equitable distribution in a divorce?
Discover the concept of equitable distribution, where marital assets and debts are divided fairly based on various factors, and understand its significance in ensuring a just outcome during divorce proceedings.
How does being a business owner affect a divorce?
Understand the complexities that arise when a spouse is a business owner during divorce, including the evaluation of the business’s value and the involvement of the spouse in its operations, and learn why seeking legal expertise in such cases is crucial.
Why do I need a divorce lawyer?
Explore the essential role of a divorce lawyer in providing guidance, legal representation, and advocacy throughout the divorce process, and learn how their expertise can protect your rights and ensure a favorable outcome.
What does “fair share” mean in a divorce?
Gain insight into the concept of a “fair share” in divorce, which involves equitable division of marital property based on factors like contributions to the marriage and financial needs, and understand its importance in achieving a just resolution with the assistance of a skilled divorce lawyer.
Further Reading
Our lead attorney, Molly Rosenblum Allen, Esq., has developed a range of valuable resources to assist you during challenging times. We encourage our readers to explore these resources for guidance and support:
Las Vegas Divorce Attorney: Navigate your divorce with expert legal support tailored for Las Vegas residents. Explore More
Alimony in Nevada: Understand the specifics of alimony, how it’s determined, and what you can expect in the state of Nevada. Learn More
Divorce and Mortgage: Find out how divorce can impact your mortgage and housing situation, and explore your options. Get Informed
Divorce and Taxes: Uncover the tax implications of divorce and how to navigate these financial changes. Understand Your Finances
Health Insurance After Divorce: Explore your options for health insurance coverage following a divorce. Secure Your Health Future
Divorce and Bankruptcy: Learn about the intersection of divorce and bankruptcy and how to manage these challenging circumstances. Navigate Complex Situations
Student Loan Debt Divorce: Find out how student loan debt is treated in divorce and what it could mean for you. Manage Your Debt
How Much is Alimony in Nevada?: Get a clearer picture of alimony amounts and how they are determined in Nevada. Get the Details
Divorce Attorney Fee: Understand the costs associated with hiring a divorce attorney and how fees are structured. Plan Your Finances
Who Gets the House in a Divorce in Nevada: Learn about property division in Nevada and how decisions about the marital home are made. Know Your Rights
How to Not Get Screwed in a Divorce: Equip yourself with knowledge and strategies to protect your interests during a divorce. Safeguard Your Interests
Molly Rosenblum Allen, Esq. is committed to offering professional and compassionate legal assistance to help you navigate these complex matters. We hope these resources will provide the support and clarity you need during your time of need.
Offsite Resources You May Find Helpful
Here are seven offsite resources that provide information on whether a spouse is entitled to half of your business in a divorce:
American Bar Association: The ABA provides a variety of resources on legal topics, including information on business assets in divorce.
FindLaw: This online resource provides free legal information, a lawyer directory, and other resources on a wide range of legal topics, including division of assets and business in divorce.
Nolo: This site provides legal information for consumers and small businesses, including details on how businesses are divided in divorce.
Justia: A platform that provides free legal information and a directory of attorneys for various legal issues, including the division of business assets in a divorce.
Avvo: This website provides a directory of lawyers, legal advice, and other resources on a broad range of legal topics, including the division of business assets in divorce.
LegalZoom: An online legal technology company providing legal information and services to consumers and small businesses, including guidance on what happens to a business in a divorce.
LegalMatch: This online legal matching service helps individuals find lawyers in their area, including divorce attorneys who can provide advice on the division of business assets in a divorce.
What's Next?
Are you Las Vegas resident who’s facing a divorce?
Keep calm!
The Rosenblum Allen Law Firm is here to save the day. We have expert attorneys who specialize in separation and mediation law.
Whether it’s child support, spousal maintenance, or division of marital assets – our Las Vegas divorce lawyers are always ready to provide excellent legal representation for your case. Our team works closely with each client offering experienced direction with unmatched attention to detail till you get what rightfully belongs to you during the process of separation & settlement agreements.
Don’t let yourself be taken advantage of–rest easy knowing that isn’t going to happen when we’re standing guard on your side!
Call us today at 702-433-2889 and take the first step towards freedom from all the chaos brought by parting ways with someone special through divorce proceedings –We got this!
