Divorce proceedings can be a complex and emotionally challenging process. When it involves the division of property, it can become even more complicated. As an attorney who primarily deals with divorce and child custody cases, I often receive the question of whether a spouse is entitled to a business purchased during a divorce process. In this blog post, I aim to provide an answer to this question and give some guidance on how to proceed in such a situation.

The answer to the question of whether a spouse is entitled to a business purchased during a divorce process depends on the source of the funds used to purchase the business. If the funds used can be traced back to separate property funds, which means that the funds were obtained before the marriage, then your spouse is not entitled to any share in the business. However, if the funds cannot be traced back definitively, then they will automatically be considered community property funds. Your spouse may be entitled to a portion of the business in such a case.

It is important to note that proving the source of the funds used to purchase a business can add expenses to your attorney’s fees and require additional documentation. Therefore, it is advisable to wait at least 30 days after the divorce has been finalized before opening a business. This will give you time to sort out your finances and make it easier to prove the source of the funds.

In any case, it is always recommended to seek legal advice from an experienced attorney who can help you navigate the divorce process. If you have a specific situation that you would like to discuss, you can schedule a call with a member of our team by visiting our website.

In conclusion, whether a spouse is entitled to a business purchased during a divorce process depends on the source of the funds used. If the funds used can be traced back to separate property funds, then your spouse is not entitled to it. However, if the funds cannot be traced back definitively, then they will be considered community property funds, and your spouse may be entitled to a portion of the business. I hope this information has been helpful to you, and if you have any further questions, please do not hesitate to reach out to us.