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Dwayne B.
Dwayne B., Attorney
Category: Real Estate Law
Satisfied Customers: 33734
Experience:  Began practicing law in 1992
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How do I separate LLC with both individuals as managing

Customer Question

How do I separate LLC with both individuals as managing partners on two properties in a divorce. Each gets a property?state of Oregon
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Dwayne B. replied 1 year ago.

Hello and thank you for contacting us. This is Dwayne B. and I’m an expert here and looking forward to assisting you today. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification. Also, I can only answer the questions you specifically ask and based on the facts that you give so please be sure that you ask the questions you want to ask and provide all necessary facts. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

Are you one of the parties in the divorce?

Also, are the parties going to divide the LLC, continue owning it together, etc?

Customer: replied 1 year ago.
I am one of the parties and yes we will agree to one of properties to each with no connection after divorce to each other. So how do we not be responsible or on each other property ? Just write up new LLC agreements with only each of us on our property? Quit claim?
Expert:  Dwayne B. replied 1 year ago.

I can't tell you specifically what you have to do 10 because that is against the website rules and 2) it really requires a much more in depth interview and review of the facts than I can do here. I don't like Quitclaim Deeds because they can often result in a title company being unwilling to write a policy of title insurance later.

Are the properties currently deeded to the LLC? In its name? If not, whose names are ***** ***** deed?

Expert:  Dwayne B. replied 1 year ago.

Also, are you representing yourselves?

Customer: replied 1 year ago.
they are deeded to each LLC and yes we are amicable and hope to do ourselves
Expert:  Dwayne B. replied 1 year ago.

You need to be very, very careful in representing yourselves and trying to do deed work, divide properties, etc. that belong to the LLC. I spent years as a plaintiff's trial lawyer breaking through corporate shields to get to personal assets and this is the kind of thing that can be used for that. You may want to consider at least one of you hiring a lawyer to steer you through that mine field and to do the paperwork concerning the LLC, even if you don't have them do much of the divorce.

You have to divide the shares in the LLC as well and to get the property out of the LLC name you have to reimburse the LLC for that. If not, then it wasn't really a corporation.

Once you figure out how to compensate the LLC for the property then you can just divide it as you see fit, along with the shares, and then have the LLC deed the properties to whoever they go to. You then ratify everything with a vote of the LLC voting members. In this case you probably want to record the vote in the corporate records.

You can use a Quitclaim but just be aware that it can cause title insurance problems later.