Calculating CP v. SP for Complex Asset Owned Prior to Marriage

[scc1963]

What is the name of your state (only U.S. law)? California

Prior to marriage, I owned a share in my group (50+ physicians) medical practice for two years. My spouse did not participate in operating the practice. After seven years of marriage, the practice was sold and I received long term capital gains in the form of cash and equity in the purchasing company. I am currently employed by the purchasing entity. Does my spouse have a community property interest in the proceeds from the sale? If so, how much?

 

[ecmst12]

This issue is far too complex for a message board. You need a real live lawyer.

 

[LdiJ]

What is the name of your state (only U.S. law)? California

Prior to marriage, I owned a share in my group (50+ physicians) medical practice for two years. My spouse did not participate in operating the practice. After seven years of marriage, the practice was sold and I received long term capital gains in the form of cash and equity in the purchasing company. I am currently employed by the purchasing entity. Does my spouse have a community property interest in the proceeds from the sale? If so, how much?

Maybe...it would take a lot of facts and calculations to determine how much.

General rule of thumb is that unless an asset is kept completely separate, any community equity would be equity that accrued during the marriage. However, that is a very simplistic answer. That is something for which you will need an attorney, and likely an accountant as well.

 

[tranquility]

Probably. Anything you "earned" while married, will be considered community property. Only things the result of capital contribution as separate property would be excluded.

 

[Zigner]

While I understand the desire to help, ecmst12's post is spot-on.

 

[scc1963]

Thank you all for your advice.