When it comes to divorce, various factors could cause the process to become lengthy and brutal. Property division can create disputes, especially when the soon-to-be ex-spouses do not agree in its division. These issues can be very prominent in a divorce when it comes to business assets, especially if the assets are significant and both spouses believe that they are entitled to them.
The ownership of HR Comp will soon be decided in divorce court. HR Comp is a group of companies, specifically a “politically connected professional employer organization business.” Chris and Andrea Ball own the Knoxville based company, and the couple is in the middle of a bitter divorce making various allegations with regards to ownership.
What the dispute comes down to is whether the company is a marital asset. According to reports, Chris does not own any part of the employee leasing of HR Comp, and Andrea indicates that financial documents show that the company will not go into receivership. Chris sates that he was kept in the dark about much of the business activities but claims that not only is his name attached to the business and various documents, but he also invested $80,000 into the company.
When couples cannot determine whether property falls into personal or marital property, a judge often determines it. In this case, if the wife maintains ownership of the company, she might be required to pay back her ex-husband the money invested into the company. To make that decision, various documents and business actives might need to be investigated in order to fully determine who will own the company and if the other spouse will receive a share of the company.
Property division could be a lengthy process. It is important that each spouse itemizes what is their personal property and what they consider marital property. This can help focus the issues and could reduce the amount of time spent disputing over specific property.
Source: Knoxville Biz, “Future of HR Comp embroiled in bitter divorce,” Jim Balloch, Aug. 14, 2013