Will the clientele of my sole proprietorship be included in the liquidation – distribution if I get divorced?
Blog
26 September 2024
Family Law & Family Property Law Team Leader, Ellen Moreau, explains it to you in the blog below.
The chosen marital regime is crucial
- If you previously decided to establish a prenuptial agreement opting for the regime of separation of property, then it’s quite straightforward. In principle, everything related to your sole proprietorship is personal, and you do not need to include it in the distribution.
- However, if there is no prenuptial agreement, you are married under the legal regime. The main rule of the legal regime is that, in principle, the monetary value of what you have acquired or built during the marriage is communal. This also applies to the economic value of the clientele that was built or acquired during the marriage. (art. 2.3.33 Civil Code)
What does your chosen marital regime mean for the customer base?
The economic value of the customer base that you built during the marriage will be included in the liquidation and distribution. This means that in addition to valuing assets like the house, the clientele of your sole proprietorship must also be valued.
It is important to note that the value of the clientele is calculated as of the date of the dissolution of the marriage.
For example, if the divorce is initiated on August 31, 2024, the customer base on that date will determine the distribution, regardless of any potential growth of your business. Even if the customer base experiences significant growth, this will not impact the valuation after August 31, 2024.
Who has the right to the clientele?
The right to act as the owner of the clientele remains personal, regardless of when the clientele was built (art. 2.3.19 Civil Code). This means that you alone have the right to make management decisions regarding the clientele. Unless you have run the business together with your partner, in which case the clientele would also belong to both of you.
Considering divorce?
If you have a sole proprietorship and are considering divorce, it’s wise to obtain legal advice. Feel free to contact us. We will review your specific situation and advise you on the potential impact of a divorce on your business.
