Legal Question in Family Law in Utah
It is my understanding that Utah is an equitable distribution state. It is also my understanding that the guidelines for division of assets accumulated (and income generated) after the date of separation (and prior to divorce) are fairly general and open-ended.
If a business started by one spouse after marriage prior to the date of separation doesn't generate income until after a divorce, can the other spouse make a claim for any portion of that income after divorce? And I am thinking in terms of substantial income. Does it make a difference if substantial income begins to be generated just before the divorce decree (date of separation is 1.5 years)? Does it make any difference if the income generated is related to potential ideas generated during the time of marriage?
I understand that business potential can be considered a factor in evaluating assets. In this case, any scenarios for calculating business potential at the time of separation is likely to be very low, but more recent potential nearing the time of divorce a year and a half after the other spouse left may be higher.
My desire with these questions is more about keeping things uncomplicated, avoiding areas of potential conflict after the divorce, and not stifling creativity more than protecting assets.
1 Answer from Attorneys
A divorce decree is usually considered to be a full and complete settlement of the issues up to the date of the divorce. Unless there is fraud or deceit the other spouse should have made a claim prior to the divorce.
If you have an unusual situation which would allow a spouse to go back before the divorce and claim an interest, that spouse would have to show that there was an unforeseeable asset - very hard to do.
If there was income prior to the divorce the other spouse should have known and made a claim (again absent fraud or deceit.)
If there is fraud or deceit, then the other spouse can go back and claim an interest.
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