Is Spouse Entitled to Part of My Business?

Question of the Day:

I have owned 100% of an S Corp since 1989. I got married in 2004 and am now divorcing. Is my spouse entitled to any part of my business's proceeds or stock? – Marilyn

Answer:

Marilyn: It depends on state law and the facts.  In my state, he would not be entitled to the stock.  But if your company appreciated in value during the marriage, due to your efforts, the court could find that appreciation to be marital property and give him a marital award based on that and several other factors.