Legal Question in Business Law in Arizona

husand and wife corporation

We are married and are going to incorp. our insurance agency. In case of divorce how would incorporating help insure the business would be split evenly? How would we right it up to ensure equal partnership within a corporation? Right now there is only myself and my husband to be concerned about. We are considering the S Corporation.


Asked on 7/11/02, 7:04 pm

1 Answer from Attorneys
Robert Lord Berens, Kozub & Lord PLC

Re: husand and wife corporation

Incorporating doesn't ensure an even split upon divorce, but its a step in the right direction. You could sign a post-nuptial agreement providing that in the event of divorce each of you gets one-half the stock. That would ensure an even split, but prolong the marriage for purposes of the business (in other words, you'd continue to be business partners after the divorce).

The S election probably makes sense here, but I'd need more information to answer that definitively. If I can assist with the tax or corporate planning, please feel free to call.480-624-2779.

Read more
Answered on 7/12/02, 2:08 am


Related Questions & Answers

More Business Law questions and answers in Arizona