Can create a new corporation or LLC before divorcing without my wife claiming any right over it?

Asked 6 months ago - Burbank, CA

My wife and I have been talking about divorcing for the past two months. We are now close to an agreement but she just wants to find the right time to announce her parents. In the meantime, new business opportunities have presented themselves and I wanted to know if I could create a new company without her claiming any right over it.

Attorney answers (3)

  1. Michael Charles Doland

    Contributor Level 20

    4

    Lawyers agree

    Answered . The date of separation is the key date. Next is the source of funds.
    If you are separated and use separate property funds (from a gift, inheritance) there should be no problem.
    As Mr. Daymude points out, a written agreement will always benefit both of you. Even a writing where your wife acknowledges the new company as your separate property would be a great benefit.

    Since I am sure you will be using an attorney to advise you in corporate formation and contractual issues in your future business, getting an effective writing prepared should not be too difficult.

    The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may... more
  2. Michael Raymond Daymude

    Pro

    Contributor Level 20

    3

    Lawyers agree

    Answered . "Can I create a new corporation or LLC before divorcing without my wife claiming any right over it? -- It depends. Are you separated and living apart? A new company is not much more than virtual or real pieces of paper until the company is funded. Where will the funds come from? If you use community property to fund the new company, the company is a community asset. Since you are close to an agreement, each of you should retain a lawyer and hammer out the details in a marital settlement agreement. That will give you certainty. You can have an written agreement before she announces to her parents, or after. Once does not have to relate to the other.

    My answers are for general information only. They are not legal advice. Answers assume California law. I am... more
  3. Gregory Paul Benton

    Contributor Level 20

    3

    Lawyers agree

    Answered . You can create it but you must disclose it to her. You have a fiduciary responsibility. If you have not filed for the divorce, there is a strong possibility that she will have a CP claim in your interest in the corporation. Please seek legal assistance.

Related Topics

Divorce

Divorce is the process of formally ending a marriage. Divorces may be jointly agreed upon, resolved by negotiation, or decided in court.

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