Partner divorce in LLC

[Marcus Holloway]

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?

[Scott Mac]

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!