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Nonfiling Spouse & Community Property Valuation
Pardon my late Friday garbled last sentence. It should have read or it is
more clearly stated as: "The dollar value of the inheritance would be the
separate property of the W and the rest of the value would be community
property."
If you have any questions or concerns, please contact me.
Pat
Patrick T. Green
Attorney at Law
Fitzgerald & Green
1010 E. Union St. Ste. 206
Pasadena, CA 91106
Tel: 626-449-8433
Fax: 626-449-0565
pat@fitzgreenlaw.com
The post was migrated from Yahoo.
I am not sure what you mean by a separate property agreement. Are referring
to a transmutation agreement in which they would transmute any community
property component of separate property? That would be a fraudulent
transfer.
The CA cases that apply are the VanKamp/Perreira line of cases. The short
version is that the increase in going concern value is going to be community
property. You say both are being paid from corp, so I am assuming that all
increase in value is due to their community property efforts. Likely the
seed money and therefore separate property value is the inheritance and the
increase is community property.
If you have any questions or concerns, please contact me.
Pat
Patrick T. Green
Attorney at Law
Fitzgerald & Green
1010 E. Union St. Ste. 206
Pasadena, CA 91106
Tel: 626-449-8433
Fax: 626-449-0565
pat@fitzgreenlaw.com
The post was migrated from Yahoo.
Net income for the corporation for 2012 is approximately 67,000. Debtor and non-filing spouse pay themselves W2 paychecks. The corporation never got around to issuing stock. No liens on the restaurant. Money was a gift from nonfiling spouse's mother. Clients are planning to execute a Separate Property Agreement. Even if nonfiling spouse's CP efforts for the past three years of this restaurant are pursued by the trustee, how is that calculated?
ASC
>
> Gross sales are useful mostly to determine the sale value of the business -
> brokers say that a restaurant usually sells at a specific multiple of gross
> sales. What is the actual income? Are there liens against the restaurant?
> "No stock issued" - does this mean that there is actually no corporation?
> Or there is one, and just no one got around to issuing stock? Is there
> any kind of written agreement between the relatives and the nonfiling
> spouse?
> If the money was a gift, you could make an argument that it's separate
> property.
>
> John D. Faucher
> Faucher & Associates
> *818/889-8080*
>
>
> On Fri, Mar 8, 2013 at 11:05 AM, andrewcho67 wrote:
>
> > **
> >
> >
> > Thanks John:
> >
> > Gross sales for 2012 are over 1 million. Funds to start restaurant were
> > from W's relatives from outside the US; perhaps argument can be made that
> > it is nonfiling spouse's separate property? CPA confirmed no stock issued.
> >
> > ASC
> >
> >
> > --- In cdcbaa@yahoogroups.com, "John D. Faucher" wrote:
> > >
> > > I can't answer until I know the answer to some threshold questions. Who
> > > owns the stock of the restaurant, and does the nonfiling spouse own it as
> > > sole property or community property? What does the balance sheet of the
> > > corporation look like? What does the profit and loss statement show?
> > >
> > >
> > > John D. Faucher
> > > Faucher & Associates
> > > *818/889-8080*
> > >
> > >
> > > On Wed, Mar 6, 2013 at 6:53 PM, andrewcho67 wrote:
> > >
> > > > **
> >
> > > >
> > > >
> > > > Nonfiling spouse runs a restaurant under a corporation. Fixtures,
> > > > machinery worth no more than $7,000. Liquor license $20,000. Gross
> > revenue
> > > > for 2011 was almost 1,000.000.
> > > >
> > > > In Ch 7, what would a trustee go after if the wildcard covered the $20K
> > > > and other exemptions protected the fixtures ?
> > > >
> > > > Andrew S. Cho
> > > >
> > > > Law Offices of Andrew S. Cho
> > > > 505 North Euclid Street, Suite 600
> > > > Anaheim, CA 92801
> > > > (714) 881-0009
> > > >
> > > >
> > > >
> > >
> >
> >
> >
>
The post was migrated from Yahoo.
Gross sales are useful mostly to determine the sale value of the business -
brokers say that a restaurant usually sells at a specific multiple of gross
sales. What is the actual income? Are there liens against the restaurant?
"No stock issued" - does this mean that there is actually no corporation?
Or there is one, and just no one got around to issuing stock? Is there
any kind of written agreement between the relatives and the nonfiling
spouse?
If the money was a gift, you could make an argument that it's separate
property.
John D. Faucher
Faucher & Associates
*818/889-8080*
On Fri, Mar 8, 2013 at 11:05 AM, andrewcho67 wrote:
> **
>
>
> Thanks John:
>
> Gross sales for 2012 are over 1 million. Funds to start restaurant were
> from W's relatives from outside the US; perhaps argument can be made that
> it is nonfiling spouse's separate property? CPA confirmed no stock issued.
>
> ASC
>
>
> --- In cdcbaa@yahoogroups.com, "John D. Faucher" wrote:
> >
> > I can't answer until I know the answer to some threshold questions. Who
> > owns the stock of the restaurant, and does the nonfiling spouse own it as
> > sole property or community property? What does the balance sheet of the
> > corporation look like? What does the profit and loss statement show?
> >
> >
> > John D. Faucher
> > Faucher & Associates
> > *818/889-8080*
> >
> >
> > On Wed, Mar 6, 2013 at 6:53 PM, andrewcho67 wrote:
> >
> > > **
>
> > >
> > >
> > > Nonfiling spouse runs a restaurant under a corporation. Fixtures,
> > > machinery worth no more than $7,000. Liquor license $20,000. Gross
> revenue
> > > for 2011 was almost 1,000.000.
> > >
> > > In Ch 7, what would a trustee go after if the wildcard covered the $20K
> > > and other exemptions protected the fixtures ?
> > >
> > > Andrew S. Cho
> > >
> > > Law Offices of Andrew S. Cho
> > > 505 North Euclid Street, Suite 600
> > > Anaheim, CA 92801
> > > (714) 881-0009
> > >
> > >
> > >
> >
>
>
>
Gross sales are useful mostly to determine the sale value of the business - brokers say that a restaurant usually sells at a specific multiple of gross sales. What is the actual income? Are there liens against the restaurant? "No stock issued" - does this mean that there is actually no corporation? Or there is one, and just no one got around to issuing stock? Is there any kind of written agreement between the relatives and the nonfiling spouse?
If the money was a gift, you could make an argument that it's separate property.
John D. FaucherFaucher & Associates
818/889-8080
On Fri, Mar 8, 2013 at 11:05 AM, andrewcho67 <andrew@ascholaw.com> wrote:
Thanks John:
Gross sales for 2012 are over 1 million. Funds to start restaurant were from W's relatives from outside the US; perhaps argument can be made that it is nonfiling spouse's separate property? CPA confirmed no stock issued.
ASC
@yahoogroups.com, "John D. Faucher" <j.d.faucher@...> wrote:
>
> I can't answer until I know the answer to some threshold questions. Who
> owns the stock of the restaurant, and does the nonfiling spouse own it as
> sole property or community property? What does the balance sheet of the
> corporation look like? What does the profit and loss statement show?
>
>
> John D. Faucher
> Faucher & Associates
> *818/889-8080*
>
>
> On Wed, Mar 6, 2013 at 6:53 PM, andrewcho67 <andrew@...> wrote:
>
> > **
> >
> >
> > Nonfiling spouse runs a restaurant under a corporation. Fixtures,
> > machinery worth no more than $7,000. Liquor license $20,000. Gross revenue
> > for 2011 was almost 1,000.000.
> >
> > In Ch 7, what would a trustee go after if the wildcard covered the $20K
> > and other exemptions protected the fixtures ?
> >
> > Andrew S. Cho
> >
> > Law Offices of Andrew S. Cho
> > 505 North Euclid Street, Suite 600
> > Anaheim, CA 92801
> > (714) 881-0009
> >
> >
> >
>
The post was migrated from Yahoo.
Thanks John:
Gross sales for 2012 are over 1 million. Funds to start restaurant were from W's relatives from outside the US; perhaps argument can be made that it is nonfiling spouse's separate property? CPA confirmed no stock issued.
ASC
>
> I can't answer until I know the answer to some threshold questions. Who
> owns the stock of the restaurant, and does the nonfiling spouse own it as
> sole property or community property? What does the balance sheet of the
> corporation look like? What does the profit and loss statement show?
>
>
> John D. Faucher
> Faucher & Associates
> *818/889-8080*
>
>
> On Wed, Mar 6, 2013 at 6:53 PM, andrewcho67 wrote:
>
> > **
> >
> >
> > Nonfiling spouse runs a restaurant under a corporation. Fixtures,
> > machinery worth no more than $7,000. Liquor license $20,000. Gross revenue
> > for 2011 was almost 1,000.000.
> >
> > In Ch 7, what would a trustee go after if the wildcard covered the $20K
> > and other exemptions protected the fixtures ?
> >
> > Andrew S. Cho
> >
> > Law Offices of Andrew S. Cho
> > 505 North Euclid Street, Suite 600
> > Anaheim, CA 92801
> > (714) 881-0009
> >
> >
> >
>
The post was migrated from Yahoo.
All the Chapter 7 Trustee can administer would be the stock. That said, if the restaurant is making any money and is saleable in some way, then the chapter 7 trustee may "go after" the business itself. As for the liquor license and other items, those are first subject to the creditors, if any, of the corporation which would itself need to be liquidated or sold (via stock transfer or winding up) before the trustee could collect any monies for the Chapter 7 creditors. As such, the exemption in its entirety should be on the stock.
>
> Liquor license. What type and what county?
> Sent from my Blackberry
>
> Sent: Wednesday, March 06, 2013 06:53 PM
> To: cdcbaa@yahoogroups.com
> Subject: [cdcbaa] Nonfiling Spouse & Community Property Valuation
>
>
>
> Nonfiling spouse runs a restaurant under a corporation. Fixtures, machinery worth no more than $7,000. Liquor license $20,000. Gross revenue for 2011 was almost 1,000.000.
>
> In Ch 7, what would a trustee go after if the wildcard covered the $20K and other exemptions protected the fixtures ?
>
> Andrew S. Cho
>
> Law Offices of Andrew S. Cho
> 505 North Euclid Street, Suite 600
> Anaheim, CA 92801
> (714) 881-0009
>
The post was migrated from Yahoo.
I can't answer until I know the answer to some threshold questions. Who
owns the stock of the restaurant, and does the nonfiling spouse own it as
sole property or community property? What does the balance sheet of the
corporation look like? What does the profit and loss statement show?
John D. Faucher
Faucher & Associates
*818/889-8080*
On Wed, Mar 6, 2013 at 6:53 PM, andrewcho67 wrote:
> **
>
>
> Nonfiling spouse runs a restaurant under a corporation. Fixtures,
> machinery worth no more than $7,000. Liquor license $20,000. Gross revenue
> for 2011 was almost 1,000.000.
>
> In Ch 7, what would a trustee go after if the wildcard covered the $20K
> and other exemptions protected the fixtures ?
>
> Andrew S. Cho
>
> Law Offices of Andrew S. Cho
> 505 North Euclid Street, Suite 600
> Anaheim, CA 92801
> (714) 881-0009
>
>
>
I can't answer until I know the answer to some threshold questions. Who owns the stock of the restaurant, and does the nonfiling spouse own it as sole property or community property? What does the balance sheet of the corporation look like? What does the profit and loss statement show?
John D. Faucher
The post was migrated from Yahoo.
The shares of the corporation are the assets in the Chapter 7, not the
assets of the corporation. Exemptions can only apply to the stock not the corporation's assets. Trustee can exercise all rights of shareholders, including the right to wind up and dissolve the corporation or selling the shares.
Mark T. Jessee
Law Offices of Mark T. Jessee
"A Debt Relief Agency"
50 W. Hillcrest Drive, Suite 200
Thousand Oaks, CA 91360
(805) 497-5868 (805) 497-5864 (Facsimile)
In a message dated 3/6/2013 6:53:28 P.M. Pacific Standard Time,
andrew@ascholaw.com writes:
Nonfiling spouse runs a restaurant under a corporation. Fixtures, machinery worth no more than $7,000. Liquor license $20,000. Gross revenue for 2011was almost 1,000.000.
In Ch 7, what would a trustee go after if the wildcard covered the $20K
and other exemptions protected the fixtures ?
Andrew S. Cho
Law Offices of Andrew S. Cho
505 North Euclid Street, Suite 600
Anaheim, CA 92801
(714) 881-0009
The shares of the corporation are the assets in the Chapter 7, not theassets of the corporation. Exemptions can only apply to the stock not the
corporation's assets. Trustee can exercise all rights of shareholders,
including the right to wind up and dissolve the corporation or selling theshares.
Mark T.
JesseeLaw Offices of Mark T. Jessee"A Debt Relief Agency"50 W.Hillcrest Drive, Suite 200Thousand Oaks, CA 91360(805) 497-5868 (805)
497-5864 (Facsimile)
In a message dated 3/6/2013 6:53:28 P.M. Pacific Standard Time,
andrew@ascholaw.com writes:
Nonfiling spouse runs a restaurant under a corporation. Fixtures, machinery
worth no more than $7,000. Liquor license $20,000. Gross revenue for 2011 was
almost 1,000.000.In Ch 7, what would a trustee go after if the
wildcard covered the $20K and other exemptions protected the fixtures
?Andrew S. ChoLaw Offices of Andrew S. Cho505 North Euclid
Street, Suite 600Anaheim, CA 92801(714) 881-0009
The post was migrated from Yahoo.
Nonfiling spouse runs a restaurant under a corporation. Fixtures, machinery worth no more than $7,000. Liquor license $20,000. Gross revenue for 2011 was almost 1,000.000.
In Ch 7, what would a trustee go after if the wildcard covered the $20K and other exemptions protected the fixtures ?
Andrew S. Cho
Law Offices of Andrew S. Cho
505 North Euclid Street, Suite 600
Anaheim, CA 92801
(714) 881-0009
The post was migrated from Yahoo.