Why Should You Have a Spousal Consent Operating Agreement?
An operating agreement is a document prepared for limited liability companies (LLCs). A spousal consent operating agreement is designed for the spouse of an LLC member to sign to agree to the terms of the agreement even though she is not a member of the company.
An operating agreement is prepared for an LLC to state the details of the business. It includes all of the members’ names, their contributions and their obligations to the business. The operating agreement includes details regarding how the business will operate, where it will operate and what happens to the business if a member dies or leaves the company. It is an important document that most LLCs prepare prior to beginning the company.
When a spousal consent is requested, the spouse of one of the members of the LLC signs the agreement to state that she is simply a spouse of a member and that she agrees to the terms in the operating agreement.
One of the main purposes of a spousal consent operating agreement is to prevent the spouse of the LLC member from trying to go against the terms set forth in the agreement. For example, if an LLC member dies, his spouse might object to selling the company. If she signed a spousal consent, she cannot do this if the agreement states that this is what will occur if a member dies. Another example of when this is important is in the event of a member selling his interest in the LLC to another member. The purchasing member might request that the spouse of the selling member sign a spousal consent to release the interest she might have in the business and to consent to the sale.
A spousal consent is a document that contains several key pieces of information. It contains the name of the LLC member, the name of the spouse and the details of the operating agreement to which it pertains. It should also have the date and contain signatures of both spouses involved.