Legal Question in Business Law in New Jersey

My soon to be ex husband abandoned his family, he also walked away from a LLC business he had with his brother. He now wants his brother to buy him out of the business but his brother is saying he abandoned the business and is not entitled to anything. They owed the business for 25 years and my money started to business, can his brother shut him out of the business or does he have to buy him out? I get half of my husband share

Asked on 6/09/19, 1:02 pm

1 Answer from Attorneys

Roman Fichman Esq. Law Practice of Roman Fichman Esq.

Generally speaking, having an ownership interest in an LLC is a type of property. The good news is that merely "walking away" does not mean that the person looses their property. Whether the brother can "shut him out" depends or whether the brother has the right to do so under the operating agreement of the LLC. Reviewing and understanding the operating agreement is key to this situation. For example, the operating agreement may not give the brother the right to "shut him out", but that maybe the brother has the right to buy your husband out.

The bottom line is that what the brother can do depends on the operating agreement of the LLC. If the LLC does not have an operating agreement then the default LLC laws will apply.

Your husband has property rights in his share of the LLC and his brother can't just take that share away. It's a good idea to have a lawyer review the operating agreement and the circumstances to understand everyone's rights and responsibilities. More important if there is no operating agreement a lawyer will advise on the legal rights.

Contact me directly.

Roman R. Fichman, Esq. │ @TheLegalist

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Answered on 6/12/19, 6:35 am

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