How can I dissolve my LLC during a divorce?

Q: Can my wife take my LLC in a divorce?

Your wife may be entitled to a share of your LLC if it is considered marital property. The court will evaluate the business's value and your contributions. If the LLC was formed during the marriage, it is more likely to be viewed as marital property. Consulting with a legal professional can help clarify your rights and options.

Q: Can my ex go after my LLC?

Yes, your ex-spouse can pursue claims against your LLC if it is deemed marital property. This means they may seek a share of the business's value or profits. The specifics depend on state laws and the circumstances of your divorce. It's advisable to consult a legal professional to protect your interests.

Full question:

I own a small LLC company here in Chattanooga, Tn. My wife is part owner. It basically is a 50 % deal. We are going thru a nasty divorce and she is really causing me to loose a lot of my regular customers. She will not give me the computer with my customer base on it and my accounting. I am now going on 4 months behind in my accounting and am starting into my busy season. How can I dissolve this company or get her out of it. She did the accounting for up it until about 2 years ago. I am the one that keeps this company afloat. I actually do the work at the customers home. Without me there is no company. If I just quit working in the field, there is no income. Can you help me? I formed the company in 1987 We turned it into an LLC in 2000. I have built my company for the last 21 years with honesty and a good reputation. She is out to destroy me.

Category: LLC
Date: 04/07/2025
State: Tennessee

Answer:

The process to dissolve your LLC or remove your wife as a member depends on your operating agreement and the specific circumstances. Generally, you need to follow the procedures outlined in your operating agreement, which may include a vote from the members. A buy-sell agreement is often recommended in these situations.

According to Tennessee law, an LLC can be dissolved through several events, such as a member's withdrawal or by a court order (Tenn. Code Ann. § 48-245-101). If your LLC was formed before July 1, 1999, specific rules apply regarding membership termination. A member can withdraw at any time unless the articles or operating agreement state otherwise. If your wife refuses to cooperate, you may need to seek legal action to enforce your rights.

If you wish to dissolve the LLC, you can do so by following the steps outlined in your operating agreement or by obtaining a majority vote from the remaining members. If you cannot reach an agreement, you may consider seeking judicial dissolution, which a court can grant if it’s not practical to continue the business (Tenn. Code Ann. § 48-245-901).

For further assistance, consider consulting with a legal professional who can guide you through the specific steps and help protect your interests.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Are LLCs protected in a divorce?

In a divorce, LLCs can be subject to division as marital property. Courts typically consider the business's value and the contributions of each spouse. However, if the LLC was established before the marriage or is solely owned by one spouse, it may be protected from division. It’s important to consult with a legal professional to understand your specific situation and how state laws apply.

How does a business get split during a divorce?

During a divorce, a business can be split based on its value and the contributions of each spouse. Courts may assess whether the business is marital property or separate property. Factors like ownership, involvement, and financial contributions are considered. A buy-sell agreement can also impact how the business is divided. Legal guidance is essential to navigate this process.

Can my wife take my LLC in a divorce?

Is my wife entitled to half my business if we divorce in the UK?

In the UK, the division of business assets during a divorce depends on various factors, including the length of the marriage and each spouse's contributions. If the business is considered a marital asset, your wife may be entitled to a share, but the exact division can vary. Legal advice is crucial to understand your rights and obligations in this context.

Can my ex go after my LLC?

Can my wife take money out of my business account?

If your wife is a co-owner of the LLC, she may have the right to access funds in the business account. However, if you are the sole operator or if there are restrictions in the operating agreement, unauthorized withdrawals could be contested. It's important to review your agreements and consult with a legal professional for guidance.