Question.How will my business partner’s divorce affect the LLC we have together?
Answer. In Texas, a member’s interest in an LLC may be community property; however, a member’s rights under the Operating Agreement (e.g., right to participate in the management of the business) are not. Therefore, if one LLC member gets a divorce, they won’t be stuck dealing with their partner’s spouse. Generally speaking, the spouse will only be entitled to share in the economic benefit of the membership interest. For example, if a distribution were made to the member, he/she may be entitled to a portion of that distribution. The spouse is not going to get any control over the business.