Family limited partnerships (FLPs), limited liability companies (LLCs) and corporations might be useful to help you control certain assets if you divorce. If you set up the entity and transfer your assets to the entity during the marriage, and assume control of the entity as the FLP’s sole general partner; the LLC’s sole manager; or the corporation’s sole officer. Even if the ownership is divided equally, you retain control.
Divorce courts generally don’t dissolve FLPs, LLCs or corporations, particularly if third parties – such as children – have an ownership interest. The courts adjust the ownership interests so each ex-spouse winds up with an equal percentage. But if you controlled the entity before the marriage, you should continue in control after you divorce. Nevertheless, in divorce you can still lose a considerable share of your equity in the entity.
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