Q-1:

Subject: S corp, LLC and divorce

 

Kerry,

 

What should I be on the watch for during my 1 1/2 year divorce related to S corp and LLC?

 

My husband is a 20% minority shareholder in a family S-corp and the property that the moving business resides is an LLC that we own 33%.

 

After 1 1/2 years, I can not seem to get my attornies nor a business valuation company to value the business or obtain income and expense data.

 

I am in need of some advice... Attornies don't seem to want to touch it??  Should I begin an IRS investigation?

 

Thanks,

A-1:

You do have a legal right to have your own tax and accounting experts inspect the books of any business in which you have a financial interest.  This is to ensure that you receive a fair division of marital assets, as well as avoid any problems with IRS in regard to pass-through income from the S corp and LLC.

Any good divorce attorney should know this and do everything possible to see that your interests are protected.  If your attorney is unaware or unable to push for such inspections, it is obviously time for you to find an attorney who is more aggressive or has fewer conflicts of interest with your ex.

Good luck.

Kerry Kerstetter

Q-2:

Kerry,

I am based in the Chicagoland area - Would you happen to have a referral that you could suggest me contacting? 

I have been through three expensive attornies and have withdrawn from each because I can not get a subpeona sent to the corporate credit card companies nor validate addresses of personal property purchased by the company to appraise.

Do you have any referrals for business valuators in Chicagoland?

Thanks,

Angela

A-2:

No, I don't.

The only referrals I have are on this page.

Good luck.

Kerry

 

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 1/17/2007 02:44:00 PM Send this post: