Legal Question in Business Law in Maryland

S-Corp between Husband and Wife

My soon to be ex-husband and I own a coffeehouse business 50%-50%. Because of our personal situation he has decided to keep me out of certain functions. His latest is slapping a security program on the computer/register at work that allows only him to access with a password he will not give me. I am the one who mostly works the shop as he kept his 9-5 pm. I would like to have this info, Can I take this to small claims court? This might come off as a stupid question, I'm sorry!!

Thanks,

G.


Asked on 11/09/07, 3:26 pm

2 Answers from Attorneys

Robert Sher Wagshal and Sher

Re: S-Corp between Husband and Wife

This would not be a matter for small claims court. You would have to file an action for an accounting and other equitable relief, such as an order prohibiting your soon-to-be-ex from denying you, as an equal shareholder, access to corporate records. But before you go to court, you ought to explore buying him out of the business, perhaps as part of your divorce proceeding. It seems like it would be very difficult to successfully operate a business under these circumstances, unless one of you has complete control and the other is merely a shareholder with no say in management.

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Answered on 11/09/07, 4:48 pm
Daniel Press Chung & Press, P.C.

Re: S-Corp between Husband and Wife

I don't think this is a small claims matter. In MD, that allows you to sue for money up to $5000. You may need to obtain equitable/injunctive relief allowing you to exercise your rights as a 50% shareholder and presumably a director and officer of the company, and possibly a dissolution of the corporation and an accounting. You may or may not be able to address some of these issues in the divorce proceeding (particularly if one of you is agreeable to selling out to the other).

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Answered on 11/11/07, 7:55 am


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