Can someone give me a sole partnership before losing half in a divorce?
What is the name of your state (only U.S. law)? California
I am the de facto business partner in a company that has been operating since 2005. I co-run all the daily operations and get an equal split of the proceeds, but I am not on the paperwork because it was originally set up as a sole proprietorship by my partner and we did not make it an LLC until this year. It is now set up as an LLC with he and I having equal shares. He wants to give the company to me because his soon to be ex wife has been a drain on the company since the beginning and it's clear to everyone but her that she doesn't deserve to get half. On a separate note, he is fine with paying her a more than reasonable amount of spousal support.
My questions are:
Does the fact that we are now operating it as an LLC mean that she has any claim over the business that it was as a sole proprietorship? We have switched over all the old banking accounts and whatnot, but we are still operating under the same name. What are my/our options to retain as much of the business' worth as possible?
I've poured my heart and soul into this and I can't imagine it going into the hands of someone who has only been a thorn in its side. Thank you in advance.
What is the name of your state (only U.S. law)? California
I am the de facto business partner in a company that has been operating since 2005. I co-run all the daily operations and get an equal split of the proceeds, but I am not on the paperwork because it was originally set up as a sole proprietorship by my partner and we did not make it an LLC until this year. It is now set up as an LLC with he and I having equal shares. He wants to give the company to me because his soon to be ex wife has been a drain on the company since the beginning and it's clear to everyone but her that she doesn't deserve to get half. On a separate note, he is fine with paying her a more than reasonable amount of spousal support.
My questions are:
Does the fact that we are now operating it as an LLC mean that she has any claim over the business that it was as a sole proprietorship? We have switched over all the old banking accounts and whatnot, but we are still operating under the same name. What are my/our options to retain as much of the business' worth as possible?
I've poured my heart and soul into this and I can't imagine it going into the hands of someone who has only been a thorn in its side. Thank you in advance.
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