If a person owns shares in a corporation is this subject to community property laws if that person should die?

Question

I know to ask a lawyer and will, but I wanted some insight into the issue. I want to essentially know if a person owns shares in a corporation and wants to leave these shares to his children, can a common law wife sue for the shares if he does not want to leave them to her? What rights does each party have?

The state is Arizona and the business was owned before the couple was in the relationship. They never married and he owns 100% of the shares in the business. Now she is threatening to contest a will that was written 35 years ago that leaves all the shares to his first two children. Does she have a leg to stand on?

Answer 1

A lot depends on your state. If your state is not a community property state, then the shares are not community property unless they were purchased during your marriage.

That brings up the second conundrum. Some states view common law marriages differently, some handle them differently if you are separating.

If the shares are in an account with both your names on it, then they are partially owned by both.

If the shares are part of a company he owns, like an LLC, S or C corp, you may actually own part of the company even though, your name is no where to be found.

Uh, next time, get married. Solves many problems.

Good Luck

Answer 2

Stocks are treated as any other assets would be. So....

There are more questions you have to ask like, how did you get the stocks and what state are you in.

In some states if you were gifted the stocks, inherited them, or held them before marriage, they might not be community property.

Answer 3

community of property means you own the assets jointly,and unless these were specifically excluded in a pre nuptial contract,the assets belong as much to you as to him.