Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 3 years ago on . Most recent reply

User Stats

67
Posts
48
Votes
Marcus Holloway
  • Rental Property Investor
  • Indianapolis, IN
48
Votes |
67
Posts

Partner divorce in LLC

Marcus Holloway
  • Rental Property Investor
  • Indianapolis, IN
Posted

I understand a lawyer may be the best suited to answer this question but I thought I’d put it in the forum.

My partner is fairly certain he’s headed towards divorce.

We own a small portfolio together in an LLC.

How are the assets in the LLC affected by his divorce?

Most Popular Reply

User Stats

5,047
Posts
5,097
Votes
Scott Mac
  • Austin, TX
5,097
Votes |
5,047
Posts
Scott Mac
  • Austin, TX
Replied

Hi Marcus,

Unless you had a good asset protection attorney draw up your operating agreement, and can pay him/her for defending it, you might have a new business partner called ex-Mrs. and you might have a new dictator of the LLC called Judge X.

I've seen some very "creative" "strong arm" techniques used by Judges (or Psudo-Judges of the Divorce courts) to force individuals to do things--despite it's impact on the LLC's other members finances.

You might want to seek the council of an asset protection attorney regarding the wording of the LLC Operating Agreement, before the Lawsuit begins.

Not saying that will prevent the LLC from being besieged, but at least gives you a line of defense (you can pay to defend if you have to).

Will it happen, Maybe yes, maybe no. It depends on a lot of facts and the individuals involved, as well as the location of the Mr and Mrs in the lawsuit.

There are some asset protection attorneys who post in here.

Good Luck!

Loading replies...