It’s not too often I get to blog about one of my favorite topics, limited liability litigation, in connection with a case involving a law firm. Typically, law partners want to keep their partnership disputes out of court, at least in Connecticut. But one case filed back in April involving a local law firm has heated up, and another was recently filed between the same parties.
The Connecticut Supreme Court just held that a spouse who receives by assignment the other spouse's interests in an LLC, may not get much after all. You can read the case here. Once upon a time when I handled domestic relations cases, I knew that one of the assets that might be equitably divided was a spouse's interests in a limited liability company. The value received is really the right to receive distributions of the LLC's profits, because the spouse is not automatically a member of the LLC.