Can a Business Be Considered Marital Property?

In a marriage, a couple shares more than just emotions and life experiences; they often share assets, including businesses. When a divorce occurs, the fate of these shared businesses can become a complex legal matter. At Gertz & Rosen, we understand the intricacies of this process and aim to provide you with a comprehensive guide on how businesses owned by couples are handled during divorce proceedings in Ohio.

Marital vs. Separate Property: What’s the Difference?

First, it is crucial to distinguish between marital and separate property. Under Ohio law, marital property generally refers to assets acquired by either spouse during the marriage. Separate property, on the other hand, includes assets that one spouse owned before the marriage, gifts or inheritances received by one spouse alone during the marriage, or assets explicitly agreed upon as separate.

A jointly owned business could be considered marital property if it was started or acquired after the marriage. However, if one spouse owned the business before the marriage, the business might be partially marital and separate property.

Factors Determining Business Ownership After Divorce

Several factors come into play when determining whether a business or its assets will be considered marital property. These include (but are not limited to):

• When the business was established: If the business was set up during the marriage, it is likely to be considered marital property.
• Each spouse’s contribution: If both spouses contributed to the business’s success, it could be seen as marital property.
• The growth of the business during the marriage: If the business’s value increased significantly during the marriage, this growth might be considered marital property.

Protecting Your Business Interests

If you are a business owner who wants your company to remain separate property, a prenuptial agreement can provide essential protection. This legally binding contract establishes which assets are considered separate property and how marital property will be divided in the event of a divorce. It could specify that the business remains the sole property of one spouse, safeguarding it from potential division.

The Importance of Reliable Legal Advice

Divorce proceedings involving business owners can be complex, with numerous factors influencing the outcome. In addition, there may be disputes over shared parenting time, child support, and more. Therefore, it is crucial to seek professional legal advice early in the process.

Attorneys at Gertz & Rosen are focused on family law matters. Our unique experience in handling such cases can guide you through the divorce process with confidence, ensuring your interests are protected.

In conclusion, understanding how a divorce might impact your business is vital for any entrepreneur. While this post provides a general overview, each situation is unique and requires personalized legal advice. Do not hesitate to contact Gertz & Rosen if you require assistance with legal issues related to your business or family. We are here to help.