What percentage of LLC

[bb2147]

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

If an LLC business is established during a long term marriage, is the spouse entitled to a percentage of business? If yes, how much? I am the sole proprietor listed on papers filed.

 

[LdiJ]

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

If an LLC business is established during a long term marriage, is the spouse entitled to a percentage of business? If yes, how much? I am the sole proprietor listed on papers filed.

Possibly...it really depends on the nature of the business. If its a business with fixed assets and/or contracts, and could be run by someone other than you, then yes, its likely to be considered to be an asset to be divided.

However, if its a business with little to no assets, that relies solely on your personal labor or skills, its less likely to be something divisible.

Is the business a saleable business? A business that someone would/could want to buy?

 

[bb2147]

Thank-you for the information. I am a carpenter. The business relies solely on my personal labor/skills. There are no contracts, no huge amount of assets (some tools & work truck). It is not a business someone would want to buy.

 

[LdiJ]

Thank-you for the information. I am a carpenter. The business relies solely on my personal labor/skills. There are no contracts, no huge amount of assets (some tools & work truck). It is not a business someone would want to buy.

The value/equity of the tools and the work truck may figure into the division of marital assets, but that is all. You are simply self employed.

 

[bb2147]

Thank-you

 

[bb2147]

I have 3 employees. Does that make a difference? 90% of my work is as a sub-contractor for 1 person.

 

[mistoffolees]

I have 3 employees. Does that make a difference? 90% of my work is as a sub-contractor for 1 person.

It matters, but the end result may not be much different.

The key is how much of it is simply you doing a job and how much is intrinsic value of the business.

For example, if you closed down the LLC tomorrow and restarted it the next day and hired the same employees, how much would it impact your business? If you'd lose customers, then the business itself has value. If you would lose no customers and life would go on exactly as it does, then it's simply your work that matters and stbx wouldn't be entitled to any of that. That's an oversimplification, but gives you the idea.

Assets (the truck and tools), however, can be valued and divided.

 

[bb2147]

What about bank accounts in business name? (Checking, Money Market, Savings accounts in business name) Would spouse be entitled to any of that? Spouse name was on checking account to sign checks (paid household bills w/business checks) I removed her from checking account back in January of this year.

 

[mistoffolees]

What about bank accounts in business name? (Checking, Money Market, Savings accounts in business name) Would spouse be entitled to any of that? Spouse name was on checking account to sign checks (paid household bills w/business checks) I removed her from checking account back in January of this year.

Spouse will be entitled to 1/2 of marital assets. The money in those accounts is almost certainly a marital asset. You can not hide that money somewhere - you will need to account for it

You really need to get with an accountant on what you can and can't do. Paying household bills with business checks could create some problems for you down the line.

 

[bb2147]

So, even though the business is in my name only, stbx has contributed nothing, business bank accounts are considered marital assets no matter what? Would it be 50% entitlement automatically, or is the fact that stbx has done nothing for the business be taken into consideration?

What kind of problems regarding business checks & household bills?

I really appreciate info you are giving me.

 

[Ohiogal]

So, even though the business is in my name only, stbx has contributed nothing, business bank accounts are considered marital assets no matter what? Would it be 50% entitlement automatically, or is the fact that stbx has done nothing for the business be taken into consideration?

What kind of problems regarding business checks & household bills?

I really appreciate info you are giving me.

Yes she is entitled to 50%. And what kind of problems are you looking for regarding business checks and household bills? Basiclaly you used the business account as a second household account.

 

[mistoffolees]

So, even though the business is in my name only, stbx has contributed nothing, business bank accounts are considered marital assets no matter what? Would it be 50% entitlement automatically, or is the fact that stbx has done nothing for the business be taken into consideration?

Did you do anything to contribute to her paycheck? Yet any money from her paycheck that went into marital accounts is joint. Similarly, any money you've earned in the business is the equivalent of a paycheck. The fact that you used the business account to pay marital expenses makes it a marital account.

What kind of problems regarding business checks & household bills?

IRS rules on deductibility of expenses.

 

[bb2147]

Yes she is entitled to 50%. And what kind of problems are you looking for regarding business checks and household bills? Basiclaly you used the business account as a second household account.

I was responding to information mistoffolees said in previous message.

 

[bb2147]

Did you do anything to contribute to her paycheck? Yet any money from her paycheck that went into marital accounts is joint. Similarly, any money you've earned in the business is the equivalent of a paycheck. The fact that you used the business account to pay marital expenses makes it a marital account.

IRS rules on deductibility of expenses.

She did not receive a paycheck, no salary at all. Isn't the money I earned considered my salary, and that would be used for alimony/child support purposes? Would money markets/savings in business name be considered a marital asset as well?

Everything is legit as far as taxes go. I follow rules there. Don't want any trouble!

 

[mistoffolees]

She did not receive a paycheck, no salary at all. Isn't the money I earned considered my salary, and that would be used for alimony/child support purposes? Would money markets/savings in business name be considered a marital asset as well?

You already got your answer - she gets half.

It doesn't matter whether she got a paycheck or not. IF SHE HAD and put it into a martial account, it becomes marital. Similarly, if you had received a paycheck, it would be marital. Why do you think business income would be any different.

Everything is legit as far as taxes go. I follow rules there. Don't want any trouble!

You're paying household expenses from a business account. Doesn't sound legit to me.