Starting a Business Forming an LLC with a pending divorce

[RyGuy]

Jurisdiction

Texas

A partner 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 could just wait until the divorce is complete to form our LLC but that could take an unknown amount of time. 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.

 

[army judge]

What's the best way to proceed?

I would NOT form a partnership with the person, even after he received the divorce.

I dislike trouble.

I am risk averse to the max.

Should I start the company without him and then add him as a partner later?

If you start the business ALONE, why bring in any "partners"?

I own several businesses.
My only partner is my wife.

You might hire the person, but I keep my friendships away from my money and assets.

 

[zddoodah]

A partner and I are planning on forming an LLC together. We intend to be 50/50 partners.

FYI, LLCs don't have "partners." LLC are owned by members.

We don't want to sign any paperwork which would entitle her to any ownership of our new company.

This is something he should discuss with his divorce attorney. If he and his wife are separated and the divorce has been filed, his LLC interest should be considered separate property. However, if he uses community property assets to acquire his LLC interest (i.e., to make his initial capital contribution), then she might be able to seek to disgorge that money. Of course, this is something that she could disclaim in any marital settlement agreement that they make.

Should I start the company without him and then add him as a partner later?

Answering that question calls for legal advice, and you should review the disclaimer at the bottom of every page at this site. All I can say is that your caution bodes well for you as a business owner, and I suggest that you confer with your own attorney about how best to proceed.