My wife is starting a business with a partner as a llc. what are my rights to business if we divorce or she dies?

Though I do not practice in OH, I encounter similar situations in my practice often with my clients. This is also a marital/divorce law question and you may want to seriously seek a "prenup" (in your case called an "interim agreement" since you are already married.) That agreement can call for an equitable split of the business in the case of divorce and that can be coupled with a mandatory buy out by the actual partners through the partnership agreement or equivalent agreement that your wife and partner have. Also the partnership agreement can call for you to receive certain "economic rights" in the event of divorce. By "economic rights," I mean rights to revenues from the business, not managerial or control rights, which apparently do not go over well with your wife's partner. You should consult with a local business and/or divorce attorney to see if you can avail yourself of these or other options.

I hope this helps.

Disclaimer: This answer is for informational purposes only and does not constitute general or specific legal advice, nor create an attorney client relationship.

Though I do not practice in OH, I encounter similar situations in my practice often with my clients. This is also a marital/divorce law question and you may want to seriously seek a "prenup" (in your case called an "interim agreement" since you are already married.) That agreement can call for an equitable split of the business in the case of divorce and that can be coupled with a mandatory buy out by the actual partners through the partnership agreement or equivalent agreement that your wife and partner have. Also the partnership agreement can call for you to receive certain "economic rights" in the event of divorce. By "economic rights," I mean rights to revenues from the business, not managerial or control rights, which apparently do not go over well with your wife's partner. You should consult with a local business and/or divorce attorney to see if you can avail yourself of these or other options.

I hope this helps.

Disclaimer: This answer is for informational purposes only and does not constitute general or specific legal advice, nor create an attorney client relationship.

One of the great things about LLCs is that you have a lot of flexibility in how the company is set up. There are a few things that are required under Ohio law, but otherwise you have a lot of choices you can make.

If there is anything in the operating agreement relating to the death of a member or withdrawing members and their rights, that would generally control. So that is the first place to look. If there is no operating agreement yet or those items are not mentioned in the agreement, then the default rule is that if your wife dies, it is considered a withdrawal from the company. Generally the company would pay her (in this case her estate) her share of the profits or losses of the company at the time of her death. So you may or may not end up with your inheritance depending on the financial state of the company at the time.

Divorce, unless specifically dealt with in the operating agreement, generally is not an event that causes the member to withdraw from the company. If you and your wife would divorce, then divorce law would be determinative.

A possible option to help protect your inheritance would be for your wife and the partner to be managers of the LLC and for you to be a general member. The LLC would be set up to be manager-managed so your wife and the other partner would get to make all the business decisions of the company. You, as merely a member, would only have a financial interest in the company - much like if you owned share of a corporation. You can do all of this through the LLC's operating agreement.

If you have any further questions or would like to discuss your situation in more detail, feel free to contact me.