Legal Question in Family Law in New York
my husband will soon be opening a restaurant in our city. We believe that after the first one is open and running he will then build several within the city and surrounding major cities. I have nothing to do with this process and he has made it clear that this will be his veture and of course the business will be in his name as well as his mothers ,who is his major investor. my concern is should we divorce, which I forsee, what will my claim be on this? will I be completly cut off from any financial benfits from the success of the restaurant? I am concerned that my name will in no way be linked to this, even though I of course feel as if i am a partner since I alone am in charge of household and 2 children and my husband is rarely home. In other words I feel like I
I should/deserve a stake in this but unsure of my legal rights?
Sincerly,
J from NY
3 Answers from Attorneys
Assets / finances used to run / buy the business would be considered marital property (if they are not directly from his mother), so you would have some stake in the restaurant. You would also have a claim to spousal support if you are caring for children of the marriage (by you doing so, he is able to work). As for percentages and numbers, I cannot give you any at this time, but such numbers would be determined during your divorce action.
Rory writes, "Assets / finances used to run / buy the business would be considered marital property (if they are not directly from his mother), so you would have some stake in the restaurant." Actually, it is more.
You would be entitled to equitable distribution of the fair market value of the business. The problem is that restaurants are very difficult (and expensive) to value since it is a cash business.
Mike.
In divorce proceedings in New York, property amassed during the course of the marriage is divided by using a system/theory known as equitable distribution. You would be entitled to a portion of the proceeds of the business. There would, however, have to be a showing of the portion of start up funds contributed by your husband, as opposed to your mother-in-law, since you would not be entitled to any of her contribution or the share of the business built on her funds. If your husband used start up monies from funds earned or acquired prior to your marriage, you might have a problem.
Feel free to contact my office at 212-962-1031 for further information or assistance in this matter.
Patricia Martin-Gibbons
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