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0 tracked cards Supplemental - Not MEE July 2026

Before marriage, Spouse owned a small business worth $80,000. During the marriage, Spouse worked full-time in the business, used marital earnings to hire staff, and increased the business value to $500,000. At divorce, Spouse argues that the entire business and all appreciation are separate property because the business existed before marriage.
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The entire business automatically becomes marital property whenever the owner marries. Any increase in a separate business is always separate property regardless of marital labor. The increase in value attributable to marital labor may be treated as marital or divisible property, even if the original business was separate. The increase belongs entirely to the spouse who earned less income.

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