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Ely
Ely, Attorney
Category: Business Law
Satisfied Customers: 101354
Experience:  Counselor at Law.
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I'm getting a divorce and I'm in business with wife she owns

Customer Question

I'm getting a divorce and I'm in business with wife she owns 51 percent and has abandoned company the company wil be dissolved shortly can I start new company same name just be Inc instead is LLC now
Submitted: 1 year ago.
Category: Business Law
Expert:  Ely replied 1 year ago.

Hello and welcome to JustAnswer. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

I am sorry to hear about this situation. First of all, understand that it is not a good idea to begin a new company while the divorce is pending for two reasons:

1) She can potentially claim interest in the new company if it is created during the marriage before the divorce is finalized, and

2) Until the court formally divides the old company, or declares it yours (or whatever the Court decides), it is not clear who owns what part of the old company and thus who controls the name. If she receives majority of the company (by claiming she never abandoned it, for example), then she can revive the company possibly and then argue that she has intellectual property rights to the name.

Therefore, it is best to wait until the divorce is finalized.

But having said that, if the old company is dissolved for good, then there should be no issue starting another one with that name except LLC instead of Inc since the LLC is dissolved, will not be revived, and there is no possibility of the old company pursing the new company for the name.

However, if the old company is controlled by her, then technically, she can attempt to claim that the name belongs to her, and that the new company would be diluting the name by using the same name but simply Inc instead of LLC. If so, then this can get back into court on an intellectual property matter.

I hope this helps and clarifies. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how experts get credit for our time. Rating my answer the bottom two faces/stars (or failing to submit the rating) does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith with a positive rating.

Expert:  Ely replied 1 year ago.
Hello again. This is a courtesy check in to see if you needed anything else in regards ***** ***** question because you never responded or replied positively. I am simply touching base. Let me know. Thanks!