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I'm Lucy, and I'd be happy to answer your questions today.
All income earned during the marriage is community property, and that includes the full salary you pay yourself (just as it includes your spouse's full wages, if your spouse works). If the S Corp pays for things like your personal cell phone, car, car insurance, and other expenses, the amount of those payments is ALSO community property, because those are amounts you'd have to pay yourself if the company wasn't paying them. That means your spouse unfortunately has a right to half of the salary you've been paying yourself - but keep in mind that it would look suspicious to the judge if you suddenly stopped paying yourself a salary or drastically reduced it during the divorce. That could open the door to your spouse nosing around in the S Corporation's finances.
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Salary is wages, and that's community property. Shareholder dividends are community property if they are deposited into a joint bank account, because then they've been commingled with marital assets. Dividends that are kept 100% separate are your separate property, as long as you're not using shareholder dividends to get around paying yourself wages and therefore deprive your spouse of money he or she would have been entitled to.
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