When a Rhode Island couple chooses to go through a divorce, one of the largest issues for the court to determine is the division of marital property between the parties. Bank accounts, retirement accounts, and financial instruments can usually be divided relatively easily, as their fair value can be readily determined. Real estate, personal property, and business interests are also generally divided equitably, with accepted values used to offset each party’s share of the estate.
The division of business interests and real estate between parties to a divorce can become more complicated, as the appropriate values can be difficult to reasonably ascertain. Although determining the value of such property can be difficult, the law requires an equitable division of such property. The Rhode Island Supreme Court recently ruled against a former husband who attempted to transfer shared marital real estate to an LLC in his exclusive possession in anticipation of a divorce.
According to the facts discussed in the appellate opinion, the plaintiff in the recently decided case is a woman who has been in the process of divorce from the defendant for several years. During the divorce proceedings, the defendant chose to convey a parcel of real estate that was owned by both parties to an LLC company he created in his name alone. On the plaintiff’s motion, the family court forced the defendant’s company to become a party to the divorce, and also ordered the sale of the property from the couple to the defendant’s LLC to be set aside, so that the value of the property could be equitably divided between the parties.