I am going into a business with another person and intend to apply for a LLC. I am married and heading for a divorce. How can I protect my assets ?
Corporate / Incorporation Lawyer
If you are in a community property state, there is little if anything you can do at this stage to further protect your assets. LLC's and corporate structures are intended to protect you from liability exposure to third parties and to allow for advantageous tax planning, not to protect your assets from your spouse in event of divorce. In the future, if you remarry, a prenuptial agreement or even a post-nuptial agreement in jurisdictions that permit one, is the best way to protect yourself and your spouse in the event of separation or divorce.
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I agree with the prior answer. NJ is an equitable distribution state which means divisions are done as the court (not you) consider fair and equitable. Buisnesses which come into existence while the marriage is still in existence are considered marital assets subject to distribution. As already posted having a LLC has nothing to do with whether or not the business is subject to a divorce distribution. Other financial issues include alimony, child support and the maintenance of marital assets during the pre divorce period. If you are considering a divorce, and if you have mutual real estate and mutual children you should be discussing your options with an experienced family lawyer.
On my profile there are several legal guides. I recommend reviewing the following which may be helpful to you:
Hiring a lawyer helpful; Is it Legal? Is it Illegal?
Understanding the different court systems;
legal terms used in litigation helpful.
Divorce in General and How It's Handled in New Jersey
Financial Dos and Don'ts after a Divorce (written by Attorney Gabriel Cheong)
Child Abduction and International Law………………………………………..
Mr. Sarno is licensed to practice law in NJ and NY. His response here is not legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Sarno strongly advises the questioner to confer with an attorney in their own state to acquire more information about this issue.