LLC Divorce Issues

[Lee B]

Longtime business clients for 29 years, just finalized their divorce. 

They each are 40 % owners ( Son owns 20 % ) of an LLC which has a mixture of 9 commercial and residential rentals.

For 29 years I have communicated and met face to face with one spouse.

My communications with the other spouse and the son has been pretty minimal.

Since the spouse I have been dealing with is a minority owner, how do I handle this situation going forward?

Hopefully you have some good suggestions

Thanks in advance,

Lee

 

[Lion EA]

If your client is still the LLC/partnership, then you continue to deal with the "tax" partner. But, I'd ask if the same partner is continuing in that position.

[Lee B]

45 minutes ago, Lion EA said:

If your client is still the LLC/partnership, then you continue to deal with the "tax" partner. But, I'd ask if the same partner is continuing in that position.

I did a little research into that and the TMP is now the "Partner Representative" which is not a legal designation with respect to making financial decisions.

The Tax Advisor has a lengthy article about the issues:   https://www.thetaxadviser.com/issues/2019/jan/appointing-partnership-representative.html

The real question is, "Can a 40% partner designate themselves as the "Partner Representative" when the other two partners aren't really paying attention?