In the divorce context, issues often arise about retained earnings in a nonmarital closely held subchapter S corporation.
Recent case law provides guidance on how the shareholder spouse can shield retained earnings from the other spouse, and how the nonshareholder spouse can protect himself or herself and make a claim on behalf of the marital estate.
In general, when the corporation is the non-marital property of one spouse, the retained earnings are also deemed nonmarital and not subject to division as marital ...
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