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socrateaser
socrateaser, Lawyer
Category: Legal
Satisfied Customers: 37959
Experience:  Retired (mostly)
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I own a business partnership made up of 4 equal partners (individual

Customer Question

I own a business partnership made up of 4 equal partners (individual LLC's own by each person). Two of the partners are in the beginning of a divorce. This morning the wife decided to wire transfer half of all cash into a account without consulting anyone. This money was for bills and payroll. Can I, as a partner, take any legal action?
Submitted: 1 year ago.
Category: Legal
Expert:  socrateaser replied 1 year ago.
Hello, Is there any written agreement between you and the other three persons concerning your partnership, and how the LLCs are related?
Customer: replied 1 year ago.
Yes, we have an operating agreement. What information would you need from my agreement?
Expert:  socrateaser replied 1 year ago.
Good morning, On further reflection, I don't believe that the operating agreement matters (unless, the agreement frees the partner from liability, as I am about to explain). Business partners have a duty of fiduciary and loyalty to each other in their relations as partners. A breach of fiduciary would apply to the partner, for failing to secure the LLC accounts from access by his spouse. Which means that you could sue the partner for breach of fiduciary. Concerning the partner's spouse, if she had legal authority to access the account, based upon the LLC's separate operating agreement, then you may not be able to hold her personally liable for taking the assets. Otherwise, her actions would be an act of criminal theft against the LLC, and civil conversion (which is the civil equivalent of criminal theft). In which case, you could sue the spouse for conversion, and request a restraining order and preliminary injunction to recover the assets unlawfully taken. You could also contact law enforcement -- however, this is one of those situations where the police/sheriff are likely to avoid involvement, because of all the very difficult legal issues. It's easier for the county district attorney to let you spend your money suing, than to spend the public's money investigating, arresting and prosecuting. I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer -- otherwise, I receive nothing for my efforts in your behalf.Thanks again for using justanswer.com!