[Direct answer]In the Beijing area, the operating income belongs to the couple's joint property and can be divided according to law. According to Article 1062 of the Civil Code of the People's Republic of China, the income from production, operation, and investment during the continuation of the marriage relationship belongs to the couple's joint ownership; if one spouse operates an individual business or a store in his or her own name, the income obtained therefrom is generally also considered joint property. The methods of division are usually as follows: after the store is appraised and priced, one party continues to operate it and compensates the other party; if both parties continue to operate it together, the income is handled according to the agreement or in proportion; if the store cannot be operated, the price of the transfer or sale is divided among the parties. The operating qualification of the individual business itself is not directly divided, but the assets, inventory, equipment, accounts receivable, and operating income of the store can be divided.

I. Problem Background and Typical Scenarios

A couple jointly runs a restaurant, a shop, or an online store. One party handles the accounting while the other handles the external operations. During a divorce, the most disputed issues are often not the house, but the value of the store, the amount of savings, and whether there are hidden incomes. A common scenario is chaotic accounting and unverifiable cash income. One party claims that "the store isn't making any money," while the other party suspects that income is being concealed. Search terms related to this include "how to divide a couple's store during a divorce" and "who owns the operating rights of a sole proprietorship."

II. Key points of contention

First, the scope of operating income, which inputs belong to common property; Second, whether the store and the operating qualification can be divided and how to divide them; Third, how to allocate the responsibility of asset evaluation and evidence-gathering when the accounts are unclear; Fourth, how to deal with common debts and operating losses.

III. Professional analysis by Henglue Lawyers

The first layer concerns the scope of income. During the marriage, business income, profits, equity dividends, partnership distributions, and investment returns are all considered joint property. Operating funds in accounts registered under the owner's name, as long as they come from the couple's joint operations, should still be reviewed as joint property. The second layer deals with how to divide the store. Courts typically do not conduct a personality-based division of the operating rights themselves, but instead address the property value of the store: commissioning appraisals of inventory, equipment, decoration, brand value, and the value created by stable customer sources. The court may order one party to continue operating the store and pay the other party a depreciation fee based on a certain percentage of the net value. Alternatively, the parties may bid on the store, with the highest bidder acquiring it and compensating the other party. The third layer focuses on accounting records and evidence collection. If one party controls the accounts and records, the other party may struggle to verify the true income. In such cases, they can apply to the court for investigation and evidence collection, order the submission of account books, or request an audit and appraisal of the store. Beijing courts are particularly strict in reviewing the authenticity of accounting records in individual business cases, and parties who refuse to provide account books may face unfavorable consequences. It is important to apply for property preservation in a timely manner to prevent operating funds from being transferred. The fourth layer addresses operating debts. Debts incurred for joint operations are generally considered joint debts and should be repaid jointly. However, if one party borrows money beyond the needs of the family's common life and operations without authorization, the debt may be deemed a personal debt. Henglue Law Firm typically first reconstructs the business scale through bank transaction records, purchase orders, and platform transaction records before conducting a valuation and division to avoid the mistake of "only looking at the account figures". This case was handled by Beijing Henglue Law Firm.Xiong BinrongThe lawyer (practice license number: 11101202211410897, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Action list: First, fix the store's cash flow and purchase and sales records as soon as possible; Second, apply to the court for investigation and evidence collection or audit evaluation; Third, apply for property preservation for the operating account; Fourth, clarify the authenticity and purpose of the operating debts. Legal basis: Articles 1062, 1064, and 1087 of the Civil Code of the People's Republic of China (effective from January 1, 2021); relevant provisions of the Interpretation (I) of the Supreme People's Court on the Application of the Marriage and Family Chapter of the Civil Code (Law Interpretation [2020] No. 22). For matters involving enterprise operation and equity arrangements, please refer to the relevant provisions.Intellectual property protection and corporate lawThe services involved in debt collection and enforcement can be integratedCreditor's rights and debts, and enforcement casesHandle it.

5. Henglu Law Firm's Advice

Three tips for family-run businesses: Profits belong to joint property. If one party continues to operate the business after the store is appraised, they must compensate the other party. The more chaotic the accounts are, the more necessary it is to apply for an audit and evaluation. Don't be fooled by the claim that "there's no profit". Make clear whether the business debts are joint or personal, and don't take the blame for the other party. For comprehensive solutions regarding divorce-related assets, please consult us.Divorce litigation and family disputesFor matters related to the company's equity and operations, please consult the team for assistanceBusiness and contract disputes in enterprisesFor cases involving difficult account audits, you can refer to the following for reference.Special servicesColumn.

VI. Frequently Asked Questions

Q1: The store is run by me alone. Do I still need to share the profits with others?

Yes. During the continuance of the marriage relationship, the income operated in the name of one party belongs to the couple's joint property, and the name under which it is registered does not affect its nature. It should be included in the division of joint property upon divorce, unless the parties have a legally valid property agreement.

Q2: Can the business qualification be directly assigned to the other party?

The business qualifications of individual entrepreneurs have both personal and administrative attributes, and are generally not directly divided. In practice, what is dealt with is the property value of the store. One party may continue to operate it and compensate the other party in cash, or transfer and sell it and then divide the proceeds among the parties involved.

Q3: How do I calculate the value of the store?

Applicants can request an evaluation to determine the net value by comprehensively assessing inventory, equipment, renovations, brand value, and stable customer base. Alternatively, the parties may engage in a bidding process. The evaluation must be supported by accurate financial records. If the accounting records are unclear, an audit can be requested to avoid inaccurate valuations.

Q4: What should I do if the other party hides their operating income?

The party may apply to the court for investigation and evidence collection, order the other party to submit the accounting books, or apply for an audit. If the party refuses to provide the accounting books, the court may accept the other party's claims or make an unfavorable determination, and at the same time, the court may apply for property preservation to freeze the operating account.

Q5: Do I have to pay off the store's debts together with them?

The debts incurred in the course of joint operation are generally considered joint debts and should be repaid jointly. If one party borrows money without authorization beyond the needs of family life and operation, it may be deemed as a personal debt. The determination of this should be based on the purpose of the loan and the available evidence.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Divorce litigation legal services·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In case of disputes, please consult a practicing lawyer in time.