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Linda Alle-Murphy: Dissolving a Business With Your Spouse

Linda Alle-Murphy: Dissolving a Business With Your Spouse

Season 2023 Episode 57 Published 3 years, 2 months ago
Description

Ending a marriage to someone you also own a company with means two breakups running at the same time, in two different courthouses, on two different clocks. Attorney Linda Alle-Murphy calls the second one a business divorce, and she says the mistake people make is assuming their divorce attorney will take care of it.

Linda Alle-Murphy is litigation counsel at Company Counsel LLC in the Philadelphia area, handling business litigation and partnership disputes, and she is admitted to practice in both Pennsylvania and New Jersey. Law is her second career. She holds a bachelor's and a master's in cello performance from Juilliard, still plays, and serves as a church organist. She draws a straight line between the two: presenting a case to a judge has a lot in common with presenting a concert, and the ability to shut everything else out at a deposition, including an aggressive opposing counsel, is a musician's habit.

In this episode, Linda explains why business disputes are heard in state court rather than family court, and what a business attorney brings that a general practitioner may not. She covers what an operating agreement should settle at the start, including what happens if an owner dies, becomes incapacitated, or wants out. She explains what she looks for first in a partnership agreement, why minority, majority, and fifty-fifty ownership lead to different claims, and how a derivative action works when a minority owner needs to enforce their rights against the company itself.

The second half is enforcement. Any owner can request an accounting and access to the books, and Linda walks through the escalation when that access is refused: a motion to compel, then monetary sanctions, then civil contempt. She describes a case where sanctions came out of opposing counsel's own pocket. She also explains the certificate of dissolution and what it takes when a soon to be ex will not agree to file it, why the statute of limitations is often shorter without a written agreement, and why waiting for the divorce to finish before filing can cost the claim entirely. She closes with how to choose the right attorney, and why the state your business is registered in matters as much as the state you live in.

As always, this is strategic education, not legal or mental-health advice for your specific situation.

🎓 What you'll learn

  • Why a business dispute between spouses is usually heard in state civil court, not family court
  • What an operating agreement should settle at the start, including death, incapacity, and an owner wanting out
  • How minority, majority, and fifty-fifty ownership lead to different legal claims
  • How a derivative action lets a minority owner sue on the company's behalf as well as their own
  • What a certificate of dissolution is, and what happens when the other owner refuses to sign
  • Requesting an accounting: your right to the books, and the escalation when it is refused
  • Why the statute of limitations keeps running while your divorce is still pending
  • How to choose a business litigation attorney, and why jurisdiction and registration state matter

⏱️ Chapters
0:00 Intro
1:00 Meet Linda, and what the cello taught her about litigation
5:00 Why your business dispute is not heard in family court
7:00 The operating agreement: a prenup for the business
11:00 Minority owners, derivative actions, and the certificate of dissolution
15:00 Civil court vs. family court: decorum, evidence, and the timeline
17:00 Risk-benefit, and requesting an accounting
19:00 When the books are withheld: motions to compel, sanctions, and contempt
21:00 Statute of limitations, and why you cannot wait for the divorce
24:00 Choosing a business attorney, and why jurisdiction matters

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