Forming an LLC with a pending divorce

[RyGuyy]

A friend and I are planning on forming an LLC together. We intend to be 50/50 partners. He has, unfortunately, a pending divorce after he discovered his wife having an affair.

What's the best way to proceed? We don't want to sign any paperwork which would entitle her to any ownership of our new company. We've produced no IP thus far so there's nothing of any value that she would be entitled to already. We're just two guys that want to work together.

We could just wait until the divorce is complete to form our LLC but that could take an unknown amount of time and we're anxious to get started. Should I start the company without him and then add him as a partner later? Open to any thoughts or ideas. I'm really out of my element here.

 

[quincy]

A friend and I are planning on forming an LLC together. We intend to be 50/50 partners. He has, unfortunately, a pending divorce after he discovered his wife having an affair.

What's the best way to proceed? We don't want to sign any paperwork which would entitle her to any ownership of our new company. We've produced no IP thus far so there's nothing of any value that she would be entitled to already. We're just two guys that want to work together.

We could just wait until the divorce is complete to form our LLC but that could take an unknown amount of time and we're anxious to get started. Should I start the company without him and then add him as a partner later? Open to any thoughts or ideas. I'm really out of my element here.

You and your friend should wait until his divorce is final.

 

[LdiJ]

A friend and I are planning on forming an LLC together. We intend to be 50/50 partners. He has, unfortunately, a pending divorce after he discovered his wife having an affair.

What's the best way to proceed? We don't want to sign any paperwork which would entitle her to any ownership of our new company. We've produced no IP thus far so there's nothing of any value that she would be entitled to already. We're just two guys that want to work together.

We could just wait until the divorce is complete to form our LLC but that could take an unknown amount of time and we're anxious to get started. Should I start the company without him and then add him as a partner later? Open to any thoughts or ideas. I'm really out of my element here.

I think that the two of you should sit down with an attorney and lay out the facts of what you want to do and how you want to do it, and then see how that will be impacted by the divorce. Many companies do not make a profit in their first year of business therefore there might not be as much risk as you think.

Also, businesses that do not rely on a lot of equipment or investment, but are more oriented around intellectual services provided by the partners are the least risky in a divorce situation. If the company wouldn't have any value without the partners then there is nothing for a spouse to get in a divorce.

 

[quincy]

What is the name of your state?

 

[RyGuyy]

The state is Texas

 

[adjusterjack]

The state is Texas

Oops. A community property state. Your friend should definitely wait until his divorce is final. Even if the business won't be worth anything for a while he will be contributing money (no matter how little) that will make his ownership community property and get the business tied up in the divorce.

The option to start without him and bring him on later is a good one.

 

[quincy]

I think that the two of you should sit down with an attorney and lay out the facts of what you want to do and how you want to do it, and then see how that will be impacted by the divorce. Many companies do not make a profit in their first year of business therefore there might not be as much risk as you think.

This thread is from October 2019. and Ryguyy has not been seen on the forum since November 2 of last year.

Please look at posting dates before responding to a thread. Adding advice to an old thread generally does very little good as the original poster has often already resolved the issue that brought him here.

In addition, copying word-for-word the posting of another member (as you did here by copying the words of LdiJ) and trying to pass the words off as your own is called plagiarism. Not a good thing to do, AfternoonFowl, especially on a legal forum.

Your post was reported for moderator review.