Lisa and the Law

Spouses in community property states may need to be disclosed as Beneficial Owners on BOIRs

If you live in a community property state and you have actual 25% ownership of a company, your spouse is a beneficial owner as well and needs to be disclosed on your BOIR report unless he/she has signed a written disclaimer to the interest to the business ownership interest. The very general question to ask is would the spouse that is not officially listed on the business paperwork be entitled to 50% of the business ownership interest in a divorce? There are very few married couples in Arizona (and other community property states) that own property solely and separately from their spouse (maybe if the business was inherited? Specifically disclaimed in writing? Post or Prenuptial Agreements?). A legal analysis should be done. Keep in mind too that each spouse is legally considered to own 100% of thecommunity property whole so it is not 50/50 in the eyes of the law, but 100% attributed to each for the purposes of the CTA.

Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin are all community property states. Five other statesAlaska, Florida, Kentucky, South Dakota, and Tennesseehave an opt-in community property law. Registered domestic partners who live in California, Nevada, or Washington are also subject to community property laws. It is important to seek legal counsel’s advice on this issue

Related Services: CTA Compliance