Partnership Buy/Sell Agreements

[shelman40]

What is the name of your state (IL)?
My husband is in a partnership, 5 years, of a small business. The other partner is not married. I invested the original funds in the business. My husband's partner is dragging his feet on a buy/sell agreement, and has infact, stated to an employee that in the event my husband were to die, he would file bankruptcy with the company so he would not have to pay our estate the 1/2 interest in the company that I am due. We are finally getting some life insurance in place through the company that is supposed to pay me some of the value, but how do I protect myself in the interim to make sure that if something were to happen to my husband, I am not left out in the cold.
Does the fact that I invested the $ into the business in the begining have any bearing on the situation? I have the check, in my name only, as proof.

 

[JustAPal00]

A buy sell agreement is usually used to buy your partner out in case they die. Your husband would have insurance on his partners life and the partner on your husbands life. If your husband were to die, you and the partner would be partners until he bought your half. He can't go BK without you, and I doubt under the new BK laws he would be allowed to file after just receiving a large sum of money from the agreement. How the money you loaned the business was to be repaid should have been defined at the time of the loan. If not, I would have your husband start writing you checks from the business marked "loan repayment". He should continue to pay you until it is repaid.