Asked in Divorce and Business Law for Massachusetts

Q: Im 49% shareholder/co-founder of an Australian pty ltd startup company. What happens to my shares if I file for divorce?

-My wife has no involvement/stake in the company at all.

-What method of company valuation should be used if there are only expenses so far and no income from business?

-I have not used a single cent of marital funds for the business.

-After the settlement, will my spouse have any rights to future profits/dividends/income from the business?

-How can I protect my stake in the company from my spouse? (there is no prenup and I have already filed for divorce)

-I'm in Massachusetts and work on the startup with my Australian co-founder who is 51% shareholder.

Related Topics:
2 Lawyer Answers
Lillian J. LaRosa
Lillian J. LaRosa
  • Woburn, MA
  • Licensed in Massachusetts

A: You should promptly meet with a divorce practitioner to discuss the length of the marriage, ages of the parties, income of the parties, ability to acquire future capital, etc. which are among the factors for property division determination. If there has been no financial investment from the marital estate , but you are performing services or deferring income, e.g., you still need to address this issue in property division and perhaps also alimony.

Anthony C. Adamopoulos agrees with this answer

Anthony C. Adamopoulos
Anthony C. Adamopoulos
  • Topsfield
  • Licensed in Massachusetts

A: I agree with Lillian.

Having filed the divorce without the necessary prep work, which is obvious from your question, is a negative you must overcome with the advice of experienced counsel.

Keep in mind the basis of all property division is that All property owned by any spouse is part of the marital property and it is to be divided fairly. See Lillian's answer for what is considered in deciding what is fair.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.