Just have a question on a business opened by me and my future ex. Have been married for 6 years. Three years ago we opened a school of massage to teach and instruct students thus allowing them to get the required educational hours so they can receive their license to practice massage. I, being a licensed teacher of anatomy, would teach the anatomy and physiology hours. My future ex, being a licensed massage therapist, would teach the massage technique portion. This April will be our 3rd class starting. We are the only employees of the school and the only instructors.

In December, we both decided after years of unhappiness, to divorce. We are currently separated and haven't files anything yet. In this time frame my future ex decided that she didn't want me to work at the school now and for the future. I convinced her to continue it for the time being as it is a vital component to both out incomes. She claims to have the authority to decide this, plus hold money out from my share because she is an LMT and her name is on the business license. My question is do I have rights to this business because I have taught and helped build it through our marriage. Does she have the right to just hold money back and force me out? I feel that since we have been the sole instructors we have equal share. She is now characterizing me as an "employee" rather than a partner. Any feedback would be appreciated.

That's for a judge to decide. Get all your paperwork together, including receipts and contracts between you, and how this business is structured. Show a lawyer, just to handle your business properly and cover your own arse. No one can know what the fine print says, or whether she does have authority over you, and is just now accessing it.

For sure another job is definitely in order as you dissolve all joint assets. The last thing you need is to be dependent on an ex who is booting you out of her life and to not consult an attorney during this process to know your rights is very foolish. She can tell you anything but get facts before you make a decision.

How is the business set up? Is it a partnership (i.e. co-owners), where you have been sharing income and liability? If so then she may not just withhold your share of the business - the outcome of the business will have to be negotiated in your divorce settlement. If you have not already engaged an attorney you should drop everything and do it right now.

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Originally Posted by ebaines

... If [it's a partnership] then she may not just withhold your share of the business - ...

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Well, yes and no. Perhaps she can, although maybe legally entitled to do so (i.e.: the difference between "can" and "may"). It is one of those things which would have to be litigated in any event.

And it might be either a de facto or a de jure partnership. But in any event the division of the assets will probably be settled in a divorce court.

The divorce is only a secondary issue here. What matters most is how the business was setup. So you need to look at that. If hers is the only name on the business, she may be entitled to treat you like an employee. I would definitely consult an attorney to see what your rights are.

What State is this happening in? It can make a difference because if this is a community property state then the business would be 1/2 yours because it was started during the marriage.