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pkellar · Jan 6, 2009, 04:54 AM

Am I responsible for the debt my husband has with his business if we get divorced? It is in his name only.

George_1950 · Jan 6, 2009, 08:50 AM

While you cannot be sued for your husband's debt, your jointly owned property may be at risk. I realize you did not ask about divorce, but the article attached discusses debt and property ownership; at some time, you may want to remove your husband from checking and savings accounts, et cet. Spousal Debt Liability

ScottGem · Jan 6, 2009, 08:59 AM

If the business is an LLC or INC then its unlikely you would be responsible. If it's a sole proprietorship and the debt was incurred during the marriage, you might be heldo responsible.

If you are contemplating divorce, I would consult with a divorce attorney.

pkellar · Jan 6, 2009, 02:19 PM

Originally Posted by George_1950

While you cannot be sued for your husband's debt, your jointly owned property may be at risk. I realize you did not ask about divorce, but the article attached discusses debt and property ownership; at some time, you may want to remove your husband from checking and savings accounts, et cet. Spousal Debt Liability

Thanks for your reply... I am considering a divorce but am worried that his business debt will not give me a good settlement... our house is paid off but he took out a home equity lone on it... and he has boughten other personal items through the company that is listed in the company,, so can I get a good settlement because of the business?

JudyKayTee · Jan 6, 2009, 02:22 PM

Originally Posted by pkellar

Thanks for your reply...I am considering a divorce but am worried that his business debt will not give me a good settlement...our house is paid off but he took out a home equity lone on it...and he has boughten other personal items through the company that is listed in the company,,,,so can i get a good settlement because of the business?

As Scott said - how is the business registered or licensed? Individual, d/b/a, corporation?

An Attorney would have to review the financials and the circumstances in order to know what your entitlement is.

I'm as practical as the next person but if it's not a good divorce settlement you are going to stay with this man?

George_1950 · Jan 6, 2009, 02:29 PM

Originally Posted by pkellar

,,,,so can i get a good settlement because of the business?

What is the value of the business, less the amount of debt?

ScottGem · Jan 6, 2009, 05:23 PM

Originally Posted by pkellar

our house is paid off but he took out a home equity lone on it

Umm your house is NOT paid off if there is a Home equity loan on it.

As to whether you can get a good divorce settlemtn there is no way for us to know without kn owing the full financials. Thjat's why you need to consult a divorce attorney.

And Judy asks a pertinent question. If you can't get a good settlement are you going to stay?

pkellar · Jan 9, 2009, 07:12 AM

I do realize that the house is not paid off because the loan is through the company... he also bought through the company a $ 200,000.00 motor home and a $25,00.00 harley. So I need to know since he keeps putting the company deeper in dept with loans. Am I liable for these loans?. He also pulls appx $30,000.00 a year from the company for play money which I never gat any of that. I have to live on his paycheck & cover all household expenses & extras with that. So I want a divorce but am scared that I am going to be reliable for the company dept which is in his name only and is incorporated. I feel that since he spends so much money on everything he wants that I should (want) a good settlement...

JudyKayTee · Jan 9, 2009, 07:43 AM

Originally Posted by pkellar

I do realize that the house is not paid off because the loan is through the company...he also bought through the company a $ 200,000.00 motor home and a $25,00.00 harley. So I need to know since he keeps putting the company deeper in dept with loans. am I liable for these loans?..He also pulls appx $30,000.00 a year from the company for play money which I never gat any of that. I have to live on his paycheck & cover all household expenses & extras with that. So I want a divorce but am scared that I am gonna be reliable for the company dept which is in his name only and is incorporated. I feel that since he spends so much money on everything he wants that I should (want) a good settlement...

Unfortunately when it comes to divorce what you want/need is not always what you are awarded.

I think with this history, with these loans, your best bet is to consult with an Attorney who is familiar with the laws in your State, familiar with your circumstances (Are you working? Have you worked? What is the exact corporate set up? How are all of the assets held?) and your local Courts and Judges.

My concern would also be if you are this unhappy your husband may, likewise, be unhappy and I would get some answers before he decides to file for divorce.

pkellar · Jan 9, 2009, 03:22 PM

Thank you for your help.will consult with a local lawyer

JudyKayTee · Jan 9, 2009, 04:29 PM

Originally Posted by pkellar

Thank you for your help.will consult with a local lawyer

And please come back and let us know how this plays out. What you find out may be very helpful to the next person with the same question.