@itis_me wrote:
Thank you for the information. My divorce attorney doesn't know much about LLC and tax stuff. I live in South Dakota and we have been each getting K-1 statements. It is a 4 member LLC if that make any difference, but does it make a difference tax wise if I have her pay me the value of the property and I go buy a different property or if I just take the property instead of cash value? I know that property split during a divorce generally isn't a taxable event, just wondering if it works the same if that property happens to be in a LLC with other people. I believe either way I will be leaving the LLC with her and her parent's and starting my own.
I agree with the general statement that transfers of property due to a divorce are not taxable. If she buys your share of the LLC, that should not be taxable to you. However, if all 3 other owners combine to buy out your share, that might be 2/3 taxable (if the buyout results in ordinary income or capital gains). I recommend you find a tax specialist to assist.
