Posted: 02 September 2005 at 9:17pm | IP Logged

I have been married for over 25 years.  We live in a no-fault state (CT).  My future ex is a real estate broker.  He has sold over $5 million of residential property over the past few years including one $1 million property.  He under reported some of his commissions to the lawyers (I have copies of the checks).  

His overhead expenses are fairly low.  He has shared an office at various times, but does not have an office at this time, though he talks about opening up a new one.  He maintains a phone number which is listed on his outdoor signs ($30/mo).  He belongs to two multiple listing associations, runs classified newspaper ads and pays for his state license.  He also carries insurance for the business.  He gets new clients through word of mouth and referrals from a mortgage broker friend.  

His live in girlfriend got her license and works as an "independent contractor" for him.  I have reason to believe he paid for her real estate course.  Not usual business practice!  As he tells it, he writes and signs the contracts and she does the leg work for him.  He is paying her 70% of each commission for this!  I had predicted he would hide income this way.  This is not his only source of income.  He has a day job where he is an employee (not an owner).  He could stop doing real estate, shut down this business and open up another one under another business name, or help the girlfriend get her broker's license and work for her.  I was a very supportive spouse during the marriage - fielded client phone calls, faxed contracts, furnished his office, etc.  Of course I watched our children (now grown) when he went out with clients as he worked at night and on weekends. 

What would be my future interest in the business?  Do I have any rights to who he hires and what he pays them?

Posted: 04 September 2005 at 2:00am | IP Logged

Your spouse appears to own a business and you would have an interest in it by virtue of it being a marital asset.  Depending upon what he is doing you may be able to get an injucnction on the basis that you believe he/she is damaging the business.  This is an unusual request and you probably would not prevail.  However you may want to consider getting a valuation of his business as of the date that you separated.

Jerry Katz