I’m not a lawyer, but I do know the operative phrase here is “piercing the veil”. An LLC or Inc. does not guarantee assets will be protected, depending on state law and other mitigating factors, including fraud.
Yeah. I would think that if the transfer was done in anticipation of a legal action, it wouild be null and void.
So she can go after his ownership interest in the LLC. Actually makes it easier for her.
In Illinois, our LLC is only as good as the attorney you have representing you, when it comes to protecting your assets (or rather it is dependent on the attorney going after you and the judge).
It has become nothing more than insurance against minor claims.
It protects our mom & pop shop against the mundane claims we get every year against us, like auto accidents and property damage (yes we get sued a few times a year, its the cost to do business, and we have to build that in our prices), but we in no way are delusional about the idea that if a really big claim came along due to our own negligence or fraud, we would lose everything we personally own (so we personally try not to own too much).
Only the big boys have that sort of personal protection.