My spouse and Iare partners in the LLC but she has never participated in the business, if we get divorced does she get half?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
My spouse and Iare partners in the LLC but she has never participated in the business, if we get divorced does she get half?
The LLC has few fixed assets, it’s a consulting company and the annual revenue is about $500k w/ a 25% profit margin this is on top of my partner draw of around $150k a year. Would my wife have any claim on profits? We file a joint tax return now.
Asked on October 13, 2010 under Family Law, Massachusetts
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
Do you have a partnership agreement? Does it state how the partnership is structured? Does it address the issues of distribution of profits or money upon the sale of the business? That will all determine how the partnership is divided in the break up. I would seek legal consultation from an attorney in your area. What I am concerned about here is why she is a partner without participating in the business. Was she a "silent partner" investing money as a start up? Did you structure it for tax purposes with her as a partner? My point is that you do not want to open a can of worms depending on how and why. And if you reaped the benefits of naming her as a partner it may not be equitable to try and deny her what she has been relying on all these years. Seek help.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.