My spouse and Iare partners in the LLC but she has never participated in the business, if we get divorced does she get half?
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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 13 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.
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