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Spousal liability when husband in general partnership

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F

freead

Guest
In the state of CA, what are the risks to a wife's assets if the husband is involved in a general partnership (creditors, litigation, etc.)

Is the wife's exposure limited to community property?

How can the wife minimize the risk to her assets? Is a prenuptial agreement effective for this?
 


I AM ALWAYS LIABLE

Senior Member
My response:

Assuming, of course, that you're not already married, a Prenuptual Agreement can be very effective to protect your separate property rights and assets, even from your husband, and as long as you keep your assets separated in your own accounts, and away from the Community assets and accounts.

Be aware, however, that his liabilities can greatly impact your Community Property unless his general partnership becomes incorporated. Once incorporated, personal income and Community Property are protected from "attack" and only the corportation becomes liable. If he hasn't already done so, have your husband check out the various forms of incorporation, such as an LLC (Limited Liability Corporation).

Good luck to you.

IAAL
 
F

freead

Guest
Thanks for the info. It was very helpful.

Can you recommend any web sites or publications which further describe PRENUPTIAL AGREEMENTS and COMMUNITY PROPERTY IN CALIFORNIA?
 

I AM ALWAYS LIABLE

Senior Member
freead said:
Thanks for the info. It was very helpful.

Can you recommend any web sites or publications which further describe PRENUPTIAL AGREEMENTS and COMMUNITY PROPERTY IN CALIFORNIA?
My response:

Sure ! If you want to spend HUGE dollars for a computer program data base, with law and forms, then I would suggest that you contact West Group Legal Publishing Company. Ask them for their Rutter Practice Guides on CD or, my favorite, the California Legal Practice Guides, both of which cost between $900.00 and $2,200.00.

But, if you're not insane like me, you'll go to Barnes & Noble Booksellers, and pick up a comparatively cheap book on the subject in their Legal section.

Good luck to you.

IAAL
 

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