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Ex-Crony Capitalism Beware: The Duty to Preserve the Family Business

Closing Ad Small businesses are the engine of the American economy. What if you are a Louisiana wife whose husband has run the family’s small business while you stayed home with the children or had the “day job” that provided financial stability? Can he close the doors, move the furniture and the inventory, raid the corporate account and start up a new company called “See Ya, Inc.”, as soon as he’s sued you for divorce?

The answer depends upon whether the business is community property. If the company was formed during your marriage (and you had noprenuptial agreement), there is a presumption that the business is community property. Spouses in possession of community property when a divorce petition is filed have an obligation to care for that property and preserve it. In this case, your ex will have a duty to preserve the family business.

Imagine that the business was your family home. The person left in the home could not vandalize it, set it on fire, or allow cattle to live in it. The same general principles apply to a community business. Although after filing for divorce your husband could begin a new business that would be his and his alone, he cannot act in a way that damages the success of the community business. You should do your best to monitor the family business if you separate and bring your concerns to your lawyer’s attention at the earliest opportunity.

What Our Clients Say
★★★★★
I highly recommend Louis
I hired Louis to represent me in my custody battle. From the start he was upfront and honest with me, if he said he was going to do something he did it and he never attempted to settle for anything less than what I was asking. He was not afraid to go head to head with opposing counsel which is what we ended up having to do. Thanks to Louis and his experience and knowledge of family law we won our case. I highly recommend Louis and will always use him for my future family Court needs.
Caleb
★★★★★
Brilliant Mind and Excellent Communication
I had no idea how to even look for an attorney when I found myself needing one. Mr. Cosenza is the best attorney I have encountered, and I took a lot of time finding one. He is brilliant in matters of the law. He approached my case from every angle. I am so thankful he was my attorney. I started out knowing absolutely nothing about court related matters. He answered even my smallest questions and guided me through to understand what was best for me and my children. He was excellent in communication with quick replies. He will have all of my recommendations.
Becky
★★★★★
Attorney Cosenza at his craft
My journey with Mr. Cosenza began nearly 3 years ago when I contacted him about divorce proceedings. During our initial consultation he told me exactly what to expect and we discussed cost, which I thought reasonable. After retaining him as my attorney and finalizing my divorce, things became fairly intense during the negotiation of the property settlement; yet he was relentless and tenacious. In the end, we prevailed victorious and everything came together perfectly. Attorney Cosenza always responded in a timely manner to my many calls, emails and texts. He gave clear, detailed, rational explanations of what I could expect. His work on my case has been life changing, in the best way possible. I am forever in his debt.
Sean
★★★★★
He does his very best
Working with Louis Cosenza truly helped to make my very difficult emotional and legal situation feel much more comfortable as I knew his experience and expertise was there to support and guide me. He knows the law and he does his very best to use that knowledge to represent his clients in and out of the courtroom.
Craig
★★★★★
Hands down the best experience I’ve had with a lawyer
I would like to start by saying I am from TX and my ex wife tried to file a judgment in LA. I contacted a number of lawyers that explained to me that this maybe a process that they could look into. I spoke with Mr. Cosenza with his 30 plus year of experience and he assured me this was not going to be a issue. He was very informative on the proceedings that where going to take place. He couldn’t have called it any better. There wasn’t even a need for me to travel to show in court. It is definitely worth a little extra to hire one of the best. I hope I hope won’t be needing his help again but if I do need another lawyer in LA. I won’t hesitate to contact him and he will be my lawyer again.
Michael