A financial nightmare is gradually unfolding for Dorit and Paul Kemsley as the entity that owns their home faces the risk of suspension due to tax violations. Late on Thursday, official information was revealed that the franchise tax board may have suspended the operating status of this entity, which could lead to a series of serious consequences for the couple.
The situation stems from the fact that Dorit and Paul signed a promissory note, but instead of owning the home directly, they opted for a structure through an entity (LLC) to protect themselves from creditors and avoid other credit issues. However, this decision has now placed them in a risky situation as the entity is currently suspended due to non-payment of taxes. This means they have violated the terms of their loan agreements, a critical issue in high-value financial transactions.
The suspension of the entity not only involves tax issues but also triggers other serious repercussions. Specifically, the latest information confirms that the California Franchise Tax Board (FTB) has verified that the entity is no longer in good standing, and it has been acknowledged that it failed to meet the legal requirements to operate. Furthermore, financial documents related to the issue have been attached to the official notice, including mortgage support terms and a foreclosure notice from the relief lender during Christmas last year.
The government's action to suspend this LLC may just be the beginning of a series of severe financial problems that Dorit and Paul Kemsley will face in the future. One of the most significant consequences of this suspension is that entities no longer have the legal capacity to participate in legal proceedings, including going to court. This not only impacts their financial standing but also places them in a dangerous legal situation, particularly regarding potential violations of ATROS (Automatic Temporary Restraining Orders) in Dorit's ongoing divorce case.
If this issue is not resolved promptly, it could lead to even more severe consequences, especially given the context of Dorit's divorce proceedings. Failing to properly protect assets may be seen as an act of non-cooperation and a serious violation of asset preservation requirements in the divorce, creating an opportunity for other parties to seek an unfair division of assets.
The current situation leaves both Dorit and Paul Kemsley facing an uncertain financial future. It’s not just about taxes and assets anymore, but also the legal ramifications they may face if they do not act swiftly. The government has taken action, and the serious consequences of this suspension could open the door to a new cycle of trouble for this high-profile couple.
