That’s a question for your divorce attorney. by itself, the divorce does not disturb the LLC. It previously had two members, Mr. Smith, and Mrs. Smith, and if Mrs. Smith changes her name to Miss Jones, then the LLC still has the same two members.
Under federal law, if you live in a community property state, the LLC should have been filing as two separate schedule Cs, each reporting 1/2 the income and expenses. After the divorce, the LLC will be required to file a form 1065 partnership return, which will issue a K-1 statement to each partner, listing their share of the income and expenses to pass through to their individual tax return.
If you are not living in a community property state, then the LLC should have been filing form 1065 from the very beginning, and each member/owner should have received a K-1 statement. The only thing that changes after a divorce is that the two members put their K-1 statements on their individual single tax returns instead of listing them together on a married filing joint return.
There may be many good reasons to split up the business as part of the divorce, but since you formed a 2-member LLC, splitting up the business will require splitting the LLC, and that will require the assistance of an attorney in your state.
