...does the spouse that owns the corporation get to keep the house, or is that a different situation since they were both living in it as a primary residence?
2007-11-01 12:30:39 · 6 answers · asked by Anonymous in Politics & Government ➔ Law & Ethics
This is a great question to ask a lawyer. A couple of thoughts:
If one spouse owns a corporation, does the other spouse have any interest in the corporation? State laws vary and it would also depend if the corporation was owned prior to the marriage.
Since the house is owned by a separate legal entity (the corporation) the house would not normally be an asset the court would deal with.
2007-11-01 12:36:59 · answer #1 · answered by davidmi711 7 · 0⤊ 1⤋
The house remains corporate property, but the house's owner (the corporation, in turn owned by one spouse) is an asset at issue.
In order to avoid issues regarding self-dealing, the couple should have been paying a fair-market rent to the corporation (a separate legal entity even though owned by one of the spouses) in order to live in the house.
Whether the corporation remains the sole property of the one spouse depends on the state laws regarding division of assets in divorce. The owning spouse might end up having to give the nonowning spouse equal interest in the corporation, or the cash value thereof (or more or less, depending).
For the corporation to put the nonowning spouse out, a full-blown eviction might be required.
2007-11-01 13:12:30 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You need to look at your state's laws. Each one is different. My state is a community property state. That would mean that technically - if the Corporation was formed during the marriage then 1/2 of the value of the Corporation may belong to each party. Check with a local attorney - they should be able to give you advice for your specific state. Good luck!
2007-11-01 12:37:58 · answer #3 · answered by Rabbit 5 · 0⤊ 0⤋
In a community property state, then it doesn't matter if one spouses name is on the business, or if the home is owned by the business. Everything you have made ( financially, business, etc.), during the marriage she is entitled to as well. If you owned the corp and house before marriage, then you might be ok.
2007-11-01 12:40:10 · answer #4 · answered by Gretl 6 · 0⤊ 0⤋
the corporation owns the house so the other half cant try to get the house through the divorce. however they can go after the corporation the partner owns.
2007-11-01 12:37:17 · answer #5 · answered by george 2 6 · 0⤊ 0⤋
Well, they can either sell the house and split the money, or one spouse can buy the other one off. Those are really the only two ways this situation can be handled.
2007-11-01 12:39:13 · answer #6 · answered by Anonymous · 0⤊ 1⤋