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Updated about 2 years ago on . Most recent reply

User Stats

18
Posts
10
Votes
Brian Gilbert
  • Rental Property Investor
  • Orlando, FL
10
Votes |
18
Posts

Operating Agreement for an LLC to Protect Against Divorce Attorney

Brian Gilbert
  • Rental Property Investor
  • Orlando, FL
Posted

I have a single rental property that is under an LLC; this was purchase and formed AFTER my Divorce.

Recently, I reopened the case in order to request 1 extra day with my children since my work schedule has changed. Well, she took me to court and her attorney has been obsessed with the finances of the LLC. Per Florida Law, I have to disclose the finances of any LLC, Trust, etc that I am a Member, Owner, or someone is operating said LLC in my name. I received $2100 in rent, $1100 goes to the mortgage. I place $300 into a Business Savings account for Cap/Exp/Vac and $700 goes to pay off the HELOC I have on the property.

The attorney is hyper focused on the savings account, as she sees it as "cash available to me."  To avoid her trying to use it as spare income on my behalf, I thought that I could create an operating agreement that states 30% of the revenue must be set aside each month for Cap/Exp/Vac.  This would require me to have that pot of money there, and would specify that what it can and cannot be used for.  My Family Law Attorney agrees, but she isn't a Real Estate or Business Attorney.  

Does anyone see an issue with this?  Anyone have a better or alternative suggestion?  As a side note, does anyone have an idea how I protect future revenue from this vulture?  

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