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Lucy, Esq.
Lucy, Esq., Lawyer
Category: Family Law
Satisfied Customers: 27621
Experience:  Attorney with experience in family law.
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Additional question - Husbands father started company named

Customer Question

Additional question - Husbands father started company named "B". Father started second company named "H". When we were married in 1997 my husband owned company "B". He had acquired over 2 million shares. Three years after we were married fathers company "H" bought company "B". About one million dollars in shares were exchanged and documented in the 2000 annual report with husband, father, mother and one other company officer signatures. Husband and I were supposed to receive $750,000. dollars in cash but husband told me father changed his mind about giving him the money. Husband claims he never received any compensation for selling company "B" to company "H". Husband is currently president of company "B" and in complete control but it is technically owned by company "H" as a subsidiary. Husband has liquidated all of our assets and sold company stock over a number of years so that we do not own any company "B" or "H" stock. My attorney has told me that I do not have ownership
Submitted: 1 year ago.
Category: Family Law
Expert:  Lucy, Esq. replied 1 year ago.

Hi,

I'm Lucy, and I'd be happy to answer your questions today. I'm sorry to hear about your situation.

If company B was owned prior to the marriage, that is your husband's separate property and you do not have any ownership interest in the company, unless he later signed something giving you a portion of it. Any proceeds received from selling the company would also belong to your husband and therefore do not need to be distributed as part of an equitable distribution unless he put the money into a joint bank account - which he can't have done, since you said he never got it. That unfortunately means you're not entitled to any portion of the business, even though it was taken over by another company during the marriage.

What you could be entitled to, if you worked for the company, is half the amount that the value increased due to your efforts. Or if marital funds were invested in the business, you'd be entitled to half of that investment. Any salary your husband earned working for the company is marital funds and can be distributed equally. Those are the scenarios where it could be possible to claim some of the value, but you unfortunately wouldn't be able to claim any percentage of ownership in the business itself.

If you have any questions or concerns about what I've written, please reply so that I may address them. If I did not address the specific thing that you wanted to know, it may not have come across clearly to me, so please restate that question. It's important to me that you are 100% satisfied with the service I provide. Otherwise, please rate my service positively so that I get credit for answering your question. Thank you.

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