Can I Sell My Business During A Divorce?
Utah Rule of Civil Procedure 109 operates as an automatic injunction prohibiting certain actions in family law cases. Once the petitioner has filed their petition, they are bound by these injunctions. Once the respondent has received a copy of the petition and a copy of the injunctions, the Respondent is also bound by them. Some of these injunctions prevent the parties from transferring, moving, or disposing of any property without the written consent of the other party, or without a court order, except in the usual course of business, or to provide the necessities of life. Therefore, without a court order, neither party can sell the business without the permission of the other party or a court order.
Also, neither party can dump more money or resources into the business that is beyond the “ordinary course of business.” Hopefully, this will prevent some people from claiming that they have a lower income because they are re-investing and dumping a bunch of money into the business. Once again, permission from the other party, or a court order, would relieve a business owner from this injunction.
Can I Be Protected from My Spouse’s Business Debts In A Divorce?
A spouse can usually be protected from his or her spouse’s business debts in a divorce if the business was run properly and not co-mingled between the business and the business owner’s personal finances. Assuming that the business was set up as a corporation, an LLC, or some other business entity, the spouse should not be responsible for business debts in a divorce. Also, if the judge determines that a debt belongs to the business, the judge will usually award that debt to the owner of the business.
For more information on Selling A Business In A Utah Divorce, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (801) 616-3301 today.