The process of property division in a divorce could be complicated for entrepreneurs in Charlotte. Tech startup founders might invest so much time in building the startup that the marriage suffers, leading to divorce. The startup could be worth a considerable amount of money, and the other spouse could be entitled to take some of it.
This is generally the case in community property states if the couple does not have a prenuptial agreement. A community property state calls for the equal division of all marital property, and this is usually all the assets acquired since the marriage. The appreciation of a company that occurs during the marriage will often be counted as marital property, even in states like North Carolina that follow the principle of equitable distribution. In one case, two entrepreneurs both had startups, but one failed. However, one spouse still got half of the proceeds from the sale of the other spouse’s startup. The spouse who had to pay half of his fortune in the divorce cautioned against people holding onto their money and remaining in an unhappy marriage. He pointed out that a person with $100 million would still keep $50 million in a divorce.
The division of property may become more complicated if the startup has not yet gone public or been sold. Prior to this point, it can be hard to determine the company’s value.
Since North Carolina is not a community property state, a divorce may play out a little differently although a spouse is still supposed to get an equitable amount of marital property. One spouse might have a claim on a portion of the other spouse’s business. In a high-asset divorce, one spouse might have earned significantly more than the other. Many couples in this situation seek to negotiate an appropriate settlement with the aid of their respective attorneys.
plumides, romano & Johnson, pc