My mother formed a family limited partnership about three to four years ago of which I am a limited partner. I am about to file for divorce but I need to get an idea what I am facing concerning this partnership before I go to my attorney.
I make $50,000/yr, but with this partnership I am paying taxes on $250,000 to $400,000 in addition to my salary. I might only get $150,000 to $200,000 a year from the partnership, and the rest goes back into the partnership.
Is my share of the partnership divisible in the divorce?
You do not say how long you have been married. It may matter whether the partnership was formed prior to the marriage. Generally, if the partnership was formed during the marriage, then the value of your share of the partnership can be included in the division of the marital estate. Your state may have specific laws concerning such property, so you need to consult an attorney in your locality.
Erik H. Carter is a Senior Attorney of the Cordell & Cordell, P.C. office in Indianapolis, Indiana as well as the Litigation Manager of both the Indianapolis and Pittsburgh offices. Mr. Carter has practiced since 1993 as an attorney. He is licensed in Illinois, Indiana, Pennsylvania as well as the Northern District of Indiana and the Southern District of Indiana.