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Business & farm
Your prenup might be upheld against state law, but you need to consult with your attorney to confirm how it will be treated.
If it is upheld, you will file your Schedule C forms as you have in the past retaining all the income and property under your SSN.
If the business activities have to be split 50/50, you no longer have a Sole Proprietorship but actually have a Partnership. You will not report the business activities on a Schedule C after the split, but on a Partnership return, Form 1065. You will provide the K-1s from the return to yourself and your wife in order to report the income on your respective personal tax returns. The formation date of the Partnership will be the date the split became effective.
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March 30, 2022
8:05 AM