Division of family property after divorce
Consider the given scenario.
Marcia and Mitch Dawson had been living together in New Mexico since 1998. They purchased a condo together as joint tenants in April 1999. Mitch made the downpayment from his savings. The mortgage payments were made from commingled funds before and after the marriage. Marcia and Mitch married July 2003. In July 2009, they separated.
In August 2006, Marcia founded ChemTech Systems, with $50,000 that she received as an inheritance from her grandmother. She worked full time for ChemTech and owned all of the company’s stock. Mitch continued with his job with another employer and was not involved in ChemTech’s operations. Due to limited financial resources, Marcia did not draw a salary from ChemTech until August 2008.
In September 2009, ChemTech’s first product was approved by the Food and Drug Administration. Shortly thereafter, Marcia sold all of her ChemTech stock to a large pharmaceutical firm for $50 million. Two days later, Marcia filed for dissolution of marriage.
Discuss the legal ramifications of the division of condo, ChemTech and other assets. Would it make any difference if Marcia sold the property after filing for the dissolution of marriage?
Submit your answers in a 3 page Microsoft Word document.
Name your document: SU_MBA5005_W4_A2_LastName_FirstInitial.doc.
must be in APA style with cictations
must be completely original work
Introduction
Division of family property after divorce can be difficult if correct legal procedures are not strictly adhered to. It is always difficult to decide which spouse to get what items even in amenable situations. Things become more complicated if the divorce is contentious. While dividing the assets, various factors are usually considered, for example, the assets’ current market value and their liquidity. While dividing the family property, the court must have full information about the assets at hand. It should be in a position to differentiate marital and separate property. However, many people fail to comprehend this area well, thus……………….