Legal Question in Business Law in Minnesota

Re: corporate

Although the interest/ownership is likely Marital Property, actual stock ownership would be govered by corp documents such as a Buy-SEll agreement.

These issues can be complicated.

I have 25 years experience in Business + Corporate law.

Re: corporate

More details are needed for a solid answer; but from what you provided it is likely that a court would deem the share of the business a marital asset subject to division between the husband and wife. This does not necessarily mean that the wife actually gets a share of the business but rather that she gets that value as part of the property division. The 3 couples should negotiate a buy-sell agreement that prevents someone aquiring shares in a way they do not want. The ex-spouse may still get equal value via other assets, but it can stop that ex-spouse from becoming a part owner.

Please e-mail me if you have further questions.

Re: corporate

Thank you for your question. This issue comes up often in my practice.

The simple answer to your question is that the husband's interest in the corporation is a marital asset, and can be valued and divided by the court in a divorce proceeding. The husband does not derive and "protection" from the corportation. In fact, it is precisely the opposite. His interest in the corporation is ordinarily expressed in shares of stock. That stock is a marital asset in a divorce.

Valuing that asset may be a difficult matter, however. It depends on whether there is a buy-sell agreement between the various stock holders, among other things. Moreover, if the husband is uniquely important to the operation of the business (the law calls this a "key man"), that will also affect the valuation of his stock interest.

If you are concerned about the possibility of a divorce between one of the couples with an interest in the business, I would suggest the corporation do so advance planning with a buy sell agreement, among other things.

Feel free to contact me if you have additional questions. My contact information is below.