Full question:
Can a sole proprietor where the business is community property give half away secretly and let the other people form a incorporation and change the name?
- Category: Corporations
- Date:
- State: California
Answer:
A spouse managing a community property business can make day-to-day decisions without the other spouse's consent. However, both spouses must agree before selling the business, even if only one spouse is managing it. The managing spouse must provide written notice to the other spouse before disposing of all or substantially all of the business.
If a spouse wants to sell community property without the other’s consent, they must go to court and prove that the sale is in the best interest of both spouses, that consent was refused without good reason, or that the other spouse cannot consent due to a mental or physical impairment.
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