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If one of the spouses is the sole manager, that spouse will have exclusive control of a community owned business. The sole manager is sometimes called the primary manager. The primary manager of a community owned business is under any fiduciary obligations. The primary manager must give written notice of any proposed sale, lease, exchange, or encumbrance of all or substantially all of the personalty constituting the business, regardless of how title is held. The other spouse can join in the management of a community owned business but that announced intent of the other spouse to join in the management of a community owned business has no legal effect until the primary manager spouse consents. A primary manager spouse can transfer assets to a community owned business and thus deprive the other spouse of equal management of those assets.
