Starting a business during a divorce

I filed for divorce several years ago, it still isn't final, and I started a new business a year and a half ago, owned 50/50 with a business partner.  I asked my lawyer before incorporating if I should wait until the divorce was final and was told that my husband could only ask for the value of half of my half share of the dollar amount of any business assets accumulated prior to the divorce being final.  Since the assets of the new business are zero, his claim can only be zero.  That doesn't mean that I haven't been able to use money earned by the business to pay some of my living expenses, I certainly have done so.  We just haven't purchased anything that could be considered an asset.  The stbx and I had a business together for over 20 years, and he has done some fraudulent things in an attempt to keep way more than his share of that business, so I expected him to pounce on anything new I tried to start.  My current business partner and I do intend to purchase machinery and real estate at some point in the future, but we lease right now.  I would run this by your lawyer to double check, but I believe you should have nothing to worry about as long as you don't accumulate a lot of hard assets right away. (actually that would be a problem I'd love to have) Good luck!

Thanks.  That is good advice.

You will be fine - you could start it - HOWEVER - remember, it's income - and although she won't be entitled to the business, your extra income *could* become a factor on your alimony & child support since your divorce is not final yet.

I suggest you wait until things are final, that way, CS can't be reviewed for at least 36 months as I doubt your new start up will increase your salary to the point your CS would be 10% higher than it is set to right now, and it will give you a cushion of time to get things going.

 

Better safe than sorry...

 

Yes, I have 2 children. The child support and alimony amounts have been set (ouch).  I'll still be working my current job, this will be extra.  I have a facility to house the equipment and I'll be leasing the equipment.  (the facility is my fathers).  This will work until my business grows enough to purchase my own facility.

My concern was, if I start a business while waiting on the divorce to be final can she get 1/2 of that business too.  Since I'm not using any of (our) money or property?

Do you have kids? Is there a possibility you will be paying child support or spousal support? Would you be quitting a "9 to 5" job to start up? What funds were you planning on using to start this business?

If there is any question as to if start up funds could be considered marital property of not, it is best to wait.