Salt Lake City, UT asked in Business Law, Divorce and Family Law for Utah

Q: If my wife helped me with my business and we get divorced am I obligated to keep paying her if she no longer helps?

The business license is in my name. She is considered an employee on taxes. I can do everything without her help. She can't operate the business without me. Its a strictly labor based business. Small home based business. Just us 2 working the business.

1 Lawyer Answer
Wesley Winsor
Wesley Winsor
  • Saint George, UT
  • Licensed in Utah

A: Is she an owner of the business or just an employee? If she is an owner than every time you take an owner's draw she needs an equal amount distributed to her. I would have thought that the divorce decree would have addressed this issue. If it hasn't addressed this issue, then here are some general thoughts, but you really should get a more in-depth opinion. If she is an employee and you are the owner then you can fire her and stop paying her. However, if she is an owner, and she does not want to seed or assign her ownership interest over to you, then you could file an action petitioning the court to partition the business, or if the business does not have many assets and is a service-based business, then you could just start a new business and not include her in that business.

I hope this helps.

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