Business Divorce

[borreman]

What is the name of your state (only U.S. law)? NV

My wife and I started an LLC (50% each) 3 years ago. We created a dba (which I will call AAA) and we have been running the operations together.

6 months ago, I created a new dba company (which I will call BBB), which I registered under the same LLC.

My wife and I are now running into some personal problems that may lead to a divorce. Luckily we do not have a lot of assets, but I want to make sure that things are straightened out in case we do divorce.

My questions are as follow:

1) Can I create a new LLC (100% me), and transfer the dba BBB that I have been running all by myself for the past 6 months to that new LLC? If so, will she have any rights to that company after the divorce?

2) We own 2 cars that we use for business. One is in both our names, the second one is under my name only. I would like to transfer the second one to her name only (as it is actually her car but I bought it for her and at the time it was more convenient to put the title under my name), and I would like to keep the first car under my name only. If I do manage to transfer the titles into one name for each car, does that mean that if a divorce takes place, we would both have our own cars separated or does the law state that because we are married, it doesnt matter whose name is on the title and we would have to find a concensus?

Any thoughts appreciated. I am trying to make it smooth in case it hits the fan...

 

[mistoffolees]

What is the name of your state (only U.S. law)? NV

My wife and I started an LLC (50% each) 3 years ago. We created a dba (which I will call AAA) and we have been running the operations together.

6 months ago, I created a new dba company (which I will call BBB), which I registered under the same LLC.

My wife and I are now running into some personal problems that may lead to a divorce. Luckily we do not have a lot of assets, but I want to make sure that things are straightened out in case we do divorce.

My questions are as follow:

1) Can I create a new LLC (100% me), and transfer the dba BBB that I have been running all by myself for the past 6 months to that new LLC? If so, will she have any rights to that company after the divorce?

2) We own 2 cars that we use for business. One is in both our names, the second one is under my name only. I would like to transfer the second one to her name only (as it is actually her car but I bought it for her and at the time it was more convenient to put the title under my name), and I would like to keep the first car under my name only. If I do manage to transfer the titles into one name for each car, does that mean that if a divorce takes place, we would both have our own cars separated or does the law state that because we are married, it doesnt matter whose name is on the title and we would have to find a concensus?

Any thoughts appreciated. I am trying to make it smooth in case it hits the fan...

The LLC will be a marital asset regardless of what games you play with the name. If you're happy with it, you can each keep one LLC, but one of you may need to provide a cash payment to equalize value if the two LLCs have different value.

As for the cars, it doesn't really matter whose name is on the title (unless it was purchase before the marriage or from funds provided by a gift or inheritance). You will likely each keep one car, and the one getting the more valuable car will probably have to give up some other asset to equalize.

However, if you can reach an agreement on how to split things, then you can do essentially whatever the two of you agree with - judges will generally not interfere unless the split is TOO one-sided, or there are kids to be taken care of, or there's reason to believe that one party is being bullied.

 

[tranquility]

1. BBB is owned by the LLC. Creating a new LLC-2 will require the value of BBB to be placed on LLC's books in some way. How to accomplish that can be very complex and, in most instances, will require sale treatment. (Although there are some reorganization principles which might help too.) You cannot just dissappear assets from the LLC absent a divorce and court order. If you and wife owned LLC 50-50%, she owns *all* the LLC's assets (Including BBB.) 50%.

2. Each would own 1/2 the cars with the proviso this *could* result in a transmutation of wife's car to her seperate property. This means "your" car is 50-50% and "her" care is 100% hers. Realistically, the court would probably find you guys were just settling assets early and each would have dibs on the car in their own name.

 

[LdiJ]

What is the name of your state (only U.S. law)? NV

My wife and I started an LLC (50% each) 3 years ago. We created a dba (which I will call AAA) and we have been running the operations together.

6 months ago, I created a new dba company (which I will call BBB), which I registered under the same LLC.

My wife and I are now running into some personal problems that may lead to a divorce. Luckily we do not have a lot of assets, but I want to make sure that things are straightened out in case we do divorce.

My questions are as follow:

1) Can I create a new LLC (100% me), and transfer the dba BBB that I have been running all by myself for the past 6 months to that new LLC? If so, will she have any rights to that company after the divorce?

No you cannot...at least not without her agreement and without some potential tax implications. You may be running it by yourself but its still part of the AAA LLC...and yes, even if you successfully transfer it, its still a marital asset.

2) We own 2 cars that we use for business. One is in both our names, the second one is under my name only. I would like to transfer the second one to her name only (as it is actually her car but I bought it for her and at the time it was more convenient to put the title under my name), and I would like to keep the first car under my name only. If I do manage to transfer the titles into one name for each car, does that mean that if a divorce takes place, we would both have our own cars separated or does the law state that because we are married, it doesnt matter whose name is on the title and we would have to find a concensus?

Any thoughts appreciated. I am trying to make it smooth in case it hits the fan...

In the end, the judge in any divorce case would expect you each to get one car...and that's generally going to be the car you most typically drive, assuming that any remaining loan payments on the car can be realistically paid by the person currently driving it. Any equity in the cars will go into the pot when dividing marital assets.