Legal Question in Business Law in New York

Re: investing in start up company

While this investment is made with your personal funds and your wife gets no ownership interest in the new company through your purchase, as a result of the purchase, unless you give her some shares, she may acquire marital rights to the value of the company as well as any income generated from the investment, in the event of a divorce. This is more of a matrimonial question under NY law, rather than a business question, and a New York matrimonial attorney should be consulted. In the event of your death, she also has rights in your estate, which may include the value of the investment.

Re: investing in start up company

The key question is what you mean by your "own money." The issue is whether it is funds outside of the marital estate (separate property purchased before marriage, isloated, and never touched during the marriage or inherited from an outside source) or whether it was used with funds acquired during the marriage. If you mean you bought it with money from a paycheck earned during the marriage it is subject to marital property distribution in the event of divorce.

Should you like to discuss this or any other legal matter, you can call my office to schedule an appointment for a consultation or in the alternative, I can be reached for on-phone low-cost legal consultation at 1-800-275-5336 x0233699.