Can a divorce settlement override/supercede an LLC operating agreement?
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Can a divorce settlement override/supercede an LLC operating agreement?
We have a LLC and there are 4 members, 2 married couples. Then 1 couple got divorced and the husband gave the wife his ownership interest as part of the divorce. The husband put a stipulation in the divorce settlement that if she was to ever sell her ownership, that she would need to sell his portion back to him. Our LLC operating agreement states that a member must first offer the interest to the existing members.
Asked on December 12, 2012 under Business Law, California
Answers:
Cameron Norris, Esq. / Law Office of Gary W. Norris
Answered 11 years ago | Contributor
Well, he has made things difficult for himself, because in order to follow a court order, he has to breach the contract. The settlement does not "override" the operating agreement. They act independently.
Tell him he made an error and he needs to follow one or the other and the one he doesn't follow could result in a lawsuit.
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