Pennsylvania Divorce Law...

Pennsylvania Law - What is the "Marital Portion" of a Business?

Often, only one spouse really runs the business.

Is the other spouse entitled to any share of the business's value? Usually, the answer is "yes."

The greater the share of a business that is deemed "marital" or "community property," the more evenly a judge will divide the value of the business between the spouses.

Here are some of the questions a judge is likely to ask in determining how much of the business is "marital" or "community" property.

• How long was the business in operation before, as opposed to during, the marriage? (The longer it was, the more the business is "separate" property.)
• How much was each spouse responsible for the business's value? (The greater the level of joint participation, the more the business is "marital" property.)
• How much did each spouse contribute in other ways to the marital partnership (for example, by keeping house, entertaining, and raising the children)? (If one spouse kept the house and raised the children, that work is likely to be viewed as a contribution to the business.)
• How much of the business growth was due to the spouses' efforts? (This is a tricky one. If, say, the husband's brother was really the driving force, or the parties were simply in the right place at the right time, then a "separate" business is likely to remain "separate," even if the wife was a dedicated homemaker.)

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