Rahm's attorney John Beck informed the court that the two-time major champion independently reviewed the proposed terms of "LIV 2.0" and determined they were unacceptable.
"Mr Rahm has independently reviewed the proposed terms of LIV 2.0, as the parties have been referring to it, and has determined that those terms are unacceptable as to him, and he will not be participating going forward in LIV 2.0," Beck said.
The departure of Rahm, one of the circuit's biggest names, comes as LIV Golf navigates Chapter 11 bankruptcy proceedings. A number of other players have also sought court assistance to exit their contracts, citing unpaid wages.
LIV has already agreed to terminate the contract of Sergio Garcia after deciding it would not honour its terms. Separately, attorneys for Bryson DeChambeau, Cameron Smith, An Byeong-hun, Marc Leishman, Cameron Tringale and Matthew Wolff requested that the judge allow those players to be released from their agreements. The players want clarity on their ability to negotiate with other tournament organisers and sponsors while their LIV contracts remain unpaid.
The mass exodus threatens LIV's restructuring plan, which appears to have failed to retain key talent.