Asset Protection thru LLC?

This is a discussion on Asset Protection thru LLC? within the Divorce, Separation, Annulment forum, part of the FAMILY LAW, DIVORCE, CUSTODY category; My marriage has been rocky for a few months. I have a feeling that we may end in divorce within ...

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Old May 23rd, 2007, 03:40 AM   #1
PrivateInquiry
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Confused Asset Protection thru LLC?

My marriage has been rocky for a few months. I have a feeling that we may end in divorce within a year or two.

My parents owned a few rental properties that are in my siblings and my name. We have recently talked about forming a LLC to protect those properties and keep in the family so that we can use it in the future to help any of us and our spouses during hard times in life, but keep it in the family nevertheless.

Once that LLC is formed, we plan to acquire some more rental properties under that LLC. My question is what happens to any new properties that we purchase, will they be protected from my spouse? Will it be considered community property since I am wedded already? Is this really a viable route to take for asset protection?

Please help - I am confused about this. I also live in California.
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Old May 24th, 2007, 07:21 PM   #2
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Default Re: Asset Protection thru LLC?

Your share of the LLC will be part of your marital estate if you divorce, and any properties in the LLC that were placed there from the marriage will still be subject to being divided or a requirement that your spouse be paid.

That is not really going to change the property division. Inherited property remains yours however.
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