The finances of each spouse usually become intertwined during a marriage, and as a result, spouses tend to be somewhat financially dependent on each other. If the marriage ends in a divorce, spouses will need to unravel assets and income streams so that they are able to once again live independent lives.
Dividing assets can be particularly challenging when one or both spouses own a business. Marital assets may be intentionally or unintentionally hidden within the business, and each spouse may have certain rights to gain business assets in the divorce proceedings.
How marital assets are divided in Oregon divorces
Oregon no longer recognizes the concept of community property, meaning that marital assets are distributed equitably at the point of divorce. Therefore, divorce courts will have a large say on how all marital assets will be divided, including business assets that were acquired during the marriage.
Do business assets count as marital assets?
Whether business assets count as marital assets depends on a number of different things. First, if both spouses are co-owners of the business, the entity will be automatically counted as being marital property. Second, it is likely that the entire property will be considered to be marital property if it was created after the couple got married. If the business was created before the marriage, it could be considered to be marital property if both spouses made contributions to its functioning.
It is important that you fully understand Oregon law before taking action to file for divorce. By planning ahead, you will be better equipped to get a favorable result.