Pearland, TX asked in Divorce, Family Law and Business Formation for Texas

Q: If an LLC formed before marriage but initial capital investment made after marriage, is the LLC interest separate or com

LLC was formed with SOS a couple weeks before marriage, but capital investment ($1000) was made after wedding, with community funds. How would the LLC interest be classified in Texas family law?

1 Lawyer Answer

A: Although I doubt there is any caselaw on this precise question, my initial impression is that under the doctrine of inception of title, the LLC will most likely be characterized as separate property.

But an argument can be made it is community property if community funds were used as the initial capital contribution to the LLC

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