{"id":1298,"date":"2019-05-16T09:32:48","date_gmt":"2019-05-16T14:32:48","guid":{"rendered":"https:\/\/www.texasdivorceattorneyblog.com\/?p=1298"},"modified":"2019-05-16T09:32:48","modified_gmt":"2019-05-16T14:32:48","slug":"texas-court-finds-payment-of-personal-expenses-by-llc-constituted-constructive-fraud-in-divorce-case","status":"publish","type":"post","link":"https:\/\/www.mcclure-lawgroup.com\/blog\/texas-court-finds-payment-of-personal-expenses-by-llc-constituted-constructive-fraud-in-divorce-case\/","title":{"rendered":"Texas Court Finds Payment of Personal Expenses By LLC Constituted Constructive Fraud in Divorce Case"},"content":{"rendered":"<p>Property owned by a limited liability company belongs to the company and is generally not considered either separate or community property subject to distribution in a Texas divorce case.\u00a0 The limited liability company\u2019s owners, known as \u201cmembers,\u201d do have an ownership, or \u201cmembership\u201d interest in the company. That membership interest can be classified as separate or community property and distributed in a divorce.\u00a0 Additionally, distributions made from the company are community property, even if only one spouse is a member.<\/p>\n<p>A husband <a href=\"https:\/\/cases.justia.com\/texas\/third-court-of-appeals\/2019-03-17-00546-cv.pdf?ts=1556885605\" target=\"_blank\" rel=\"noopener noreferrer\">recently challenged<\/a> a finding of constructive fraud and order for reimbursement based on expenditures by and loans to his limited liability company (LLC). He was the LLC\u2019s sole member before and during the marriage.\u00a0 The trial court granted the wife\u2019s constructive-fraud claim and ordered reconstitution of the community estate.\u00a0 The court also characterized the LLC as the husband\u2019s separate property and reimbursed the community estate for loans made to the LLC.<\/p>\n<p>The husband appealed, challenging the trial court\u2019s findings and conclusions regarding the constructive-fraud and reimbursement claims.<\/p>\n<p> <a href=\"https:\/\/www.mcclure-lawgroup.com\/blog\/texas-court-finds-payment-of-personal-expenses-by-llc-constituted-constructive-fraud-in-divorce-case\/#more-1298\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Property owned by a limited liability company belongs to the company and is generally not considered either separate or community property subject to distribution in a Texas divorce case.\u00a0 The limited liability company\u2019s owners, known as \u201cmembers,\u201d do have an ownership, or \u201cmembership\u201d interest in the company. That membership interest can be classified as separate [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":1304,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[],"class_list":["post-1298","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Texas Court Finds Payment of Personal Expenses By LLC Constituted Constructive Fraud in Divorce Case &#8212; Texas Divorce Attorney Blog &#8212; May 16, 2019<\/title>\n<meta name=\"description\" content=\"Property owned by a limited liability company belongs to the company and is generally not considered either separate or community property subject to &#8212; May 16, 2019\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.mcclure-lawgroup.com\/blog\/texas-court-finds-payment-of-personal-expenses-by-llc-constituted-constructive-fraud-in-divorce-case\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Texas Court Finds Payment of Personal Expenses By LLC Constituted Constructive Fraud in Divorce Case &#8212; 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