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Bio Tech

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Violet and Max Harris had been living together in New Mexico since 1997.  They purchased a condo together as joint tenants in April 1999.  Max made the downpayment from his savings.  The mortgage payments were made from commingled funds before and after the marriage. Violet and Max married  July 2001.   In July 2007, they separated.

In August 2002, Violet founded BioTech Corporation, a biotechnology firm, with $30,000 that she received as an inheritance from her grandmother. She worked full time for BioTech and owned all of the company’s stock. Max continued with his job with another employer and was not involved in BioTech’s operations. Due to limited financial resources, Violet did not draw a salary from BioTech until August 2007.

            In September 2007, BioTech’s first product was approved by the Food and Drug Administration. Shortly thereafter, Violet sold all of her BioTech stock to a large pharmaceutical firm for $30 million. Two days later, Violet filed for dissolution of marriage.

Discuss the legal ramifications of the division of condo, BioTech and other assets. Would it make any difference if Violet sold the property after filing for the dissolution of marriage?

Submit your answers in a 3- to 4-page Microsoft Word document.

Name your document: SU_MBA5005_W4_A2_LastName_FirstInitial.doc.

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