Thursday, May 16, 2013

Entrepreneurship and Divorce Settlements: preliminary findings

A client is in the process of divorce and wants to launch her own business. She was excited about registering her business name with local agencies when a friend brought something to her attention: her spouse may be entitled to any profits as part of the final settlement.

I'm researching the matter and have gotten as far as federal agencies allow you to with their delayed response times and requirements, which means not far enough. The local State Department never picked up the phone and the local IRS doesn't accept calls anymore. I never even bothered to call the national branch since I was at the end of my lunch break and running out of time. But a preliminary search revealed two major points to consider if you own a business and are in the middle of divorce:

1 - You are bound to independent state laws. I found a map on one site with links to each states covering relevant regulations on business ownership and ax laws.

2 - The laws dealing with divorce and property depend on your filing status and whether the property or business was funded jointly or individually. Each state carries its own laws under those categories as well.

When I get to the bottom of this, my findings will be posted on here. Stay tuned. And wish me luck.

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