How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask FLACORPLAWYER Your Own Question
FLACORPLAWYER, Family Law Attorney
Category: Family Law
Satisfied Customers: 4634
Experience:  23 Years as attorney, licensed NY and FL. Former US ATTY.
Type Your Family Law Question Here...
FLACORPLAWYER is online now
A new question is answered every 9 seconds

I started my LLC back in 2006. I accumulated significant cash

Customer Question

I started my LLC back in 2006. I accumulated significant cash savings in this company's account. I then got married in 07 and used this cash to buy and fix up an investment property. Unfortunately, it was titled in my name alone and not the LLC. Now that I am facing divorce, will this property be treated as community property?? It is not the current homestead, but will be during this separation now that I am moving and had my primary residence foreclosed on.
Submitted: 7 years ago.
Category: Family Law
Expert:  FLACORPLAWYER replied 7 years ago.
Filing a deed in the name of the LLC will do nothing to protect it now, and will look like an attempt to hide assets to the Judge. You will maintain that the property is your seperate property because it was bought with your pre-marriage seperate cash. If need be the court will have a trial as to whether it became community property at some point. For example, if you shares the profits with your soon to be ex.
Customer: replied 7 years ago.

I am currently holding it as a rental property but will sell it before filing for divorce. At that point the money will be going back to the LLC bank account.


Will these funds be questioned?

Expert:  FLACORPLAWYER replied 7 years ago.
Yes. There will have to be a determination if this went to community from individual property.
Customer: replied 7 years ago.

Is there any legal entity that I can put the proceeds of this money into that will not be counted as community property?

Should I hold off and spend the money little by little? I want to protect my initial investment that I brought in. Why should my spouse get money that they didn't earn?

I am ok with splitting the profits that come above my initial investment, but not splitting the entire thing down the middle. It seems unfair.

Expert:  FLACORPLAWYER replied 7 years ago.
Any entity you transfer the money to is subject to division if the court determines that at any point in the marriage, the house was transferred by deed or action into community property, such as if you split expenses or profits of the house with your soon to be ex. Since this decision is subject to a hundred variables unique to your case, it is impossible for me to tell you in this forum how this will turn out. The basic rule in this situation is that it would remain your seperate property but there are dozens of exceptions. The money can be traced anywhere, it matters not where you put it if at some point the court feels it became community property. It is not fair.