Can an LLC owned by a husband and wife be kept separate from marital assests during their divorse

Hi, The LLC is a marital asset. As part of the divorce settlement you can continue to run the business together but that arrangement should be spelled out as part of the settlement or at least by a separate business operating agreement which is then referred to in some fashion as part of the settlement. I have done that in numerous cases and there is nothing wrong with continuing to run a business after a divorce if that is your agreement and desire. Good luck to you. Henry Gornbein

You can each be awarded 50% of the membership units in the LLC, per the Judgement of Divorce. Make sure you agree as to what the Operating Agreement says, as part of this settlement. There maybe tax consquences, depending on how the membership interest is currently owned.

The short answer to your question is "no." All your marital assets have to be included in the divorce and property distribution. However, you and your husband can decide that you will each retain 50% ownership of the LLC after the divorce, and any disputes you have would then be governed by your Membership Agreement. Mr. Gornbein and Mr. Gormley are correct that you should consult an attorney familiar with both family and business entity law to be sure that you divide your rights and responsibilities properly.