How to divide the assets of an individual entrepreneur

If one of the spouses is registered as an individual entrepreneur, property acquired during marriage, at divorce is divided as common property irrespective of its acquisition and from the one to whom it was issued. These provisions are enshrined in articles 34, 38 of the Family code and article 254 of the Civil code of Russia.

Debts from business activities of one spouse can be considered as the total debts, and personal debts of the entrepreneur. This requires to prove: for what purpose were spent income from business activities. If the income coming in to the family budget, was not spent in the interests of the family, these debts may not be divided between the spouses.

In Russian legislation there is no special law governing the division of property when spouses divorce, business. Therefore, the judicial authorities apply the General rules of division of joint property, but take into account the peculiarities of business activity.

In particular, it is possible to ask the court about this section of the property that the business did not cease to exist. That is, the property necessary for the conduct of business to leave to the entrepreneur, but to oblige him to pay the other spouse owed to a fraction of the cost of the property.

By agreement with the spouse property necessary for the conduct of business activities after divorce can remain in the ownership of the entrepreneur. But the second spouse may receive part of the profits from the activities of the enterprise. The share of profit can either be a fixed amount or a percentage of the profits, or in any other form. Often, such a scenario is a way out of the situation, when the spouses are engaged in fierce disputes about the division of property.

All property acquired for business is equally owned by both spouses. It is therefore assumed that the Commission of one of the spouses property transactions, it operates with the consent of the other spouse. If the consent of the other spouse to the deal was not, it can be invalidated according to article 35 of the Family code.

Division of property of the individual entrepreneur in the divorce may be claimed for either of the spouses regardless of who initiated the divorce. If the spouses cannot divide the assets of mutual on a contractual basis and will have to resort to litigation, it is important to substantiate claim. This may require a lawyer able to give advice in each case and to provide services for the conduct of the case in court.