Many families derive all or a portion of their income from businesses that one or both spouses own, so often the business becomes an integral part of a divorce. The first question that must be tackled is whether or not to include the business as a party to the divorce. Sole proprietorships (unincorporated businesses) do not need to be joined in the lawsuit as a separate party because the business “entity” is not separate from the owner, but if the business is incorporated (corporation, LLC, partnership, joint venture, etc.) then the business is actually an entity that is separate and distinct from the owner.
If the objective is to deal with the assets of the business in the divorce (such as zing or requiring their sale), then the business must be made a party. Thus, the business must be served so that its assets can be fully adjudicated by the divorce court. If, on the other hand, the objective is not to disturb the assets of the business then it need not be made a party. Ownership interest in a business, as between spouses, can be dealt with in the divorce without the business being a party. But if the business owns property that a spouse wishes to have adjudicated by the court, the business itself must be a party.