• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Did my husband screw the business up?

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

josephine johns

Junior Member
What is the name of your state (only U.S. law)? PA

My question involves business law in the state of: PA

i am not sure i am posting under the right forum, but if i did not, please let me know which one i should. this goes back to my husband messing everything up and i do not know where we stand or what we have to do.

his mother and father owned a small business. his father was incapacitated (could not talk, walk, write-was bed ridden to a stroke). his mother took his father's name off of the deed to the house and place my husbands name with hers. then one month later obtained a loan for the small business and placed the house as collateral. what is strange is the bank has it listed under his mother and fathers name. his father has/had nothing to do with the house...only his mother and him (my husband) own the house. i am not sure how the bank put the loan in his mother and father's names.
1. can his mother get a loan for the small business and place the house as collateral? what happens to my husband?

my husband took ownership of the small business 2 days before his father died and put the ownership of the business in MY name. so i am listed as the owner/president of the business.
1. now is the business responsible for this loan? what happens to the house that was used for collateral? his mother died so he got the house.
am I (as the owner of the business) responsible for any of this loan? did the bank do something wrong to allow this without his father's signature? we as a business are paying this loan and have been since 2006.

i do not want to get myself in trouble since i literaly did nothing wrong. i am afraid my husband screwed this whole thing up.
 


justalayman

Senior Member
well, first, we need to know how the mother removed the fathers name from the title of the house.

what is strange is the bank has it listed under his mother and fathers name
this tends to make me believe dad was never removed from the title and your husband was never put on the title.

1. can his mother get a loan for the small business and place the house as collateral?
yes, at least her share of the house.

what happens to my husband?
what do you mean what happens to your husband?

my husband took ownership of the small business 2 days before his father died and put the ownership of the business in MY name.
and how did this happen if dad could not talk, walk, or write?

1. now is the business responsible for this loan?
that would depend on several things you have not explained.

what happens to the house that was used for collateral?
it would probably get foreclosed on to recoup the loan if the loan is not paid.

his mother died so he got the house.
was moms estate ever probated? For that matter, was dads estate ever probated? Husband may not have any legal right to the house or it may have been needed to be sold to pay for estate debts.

am I (as the owner of the business) responsible for any of this loan?
Possible but not enough info to tell.


i am afraid my husband screwed this whole thing up.
Not enough info to tell but it surely is possible. You have many many situations all wrapped up here. You would be best served speaking with an attorney that could unwrap all the intertwined actions to determine what is what. You could have a lot of problems or you may have none. Way too complex to really deal with on an internet forum.
 

josephine johns

Junior Member
because of father in laws condition, mother in law leagally took fil off deed of house in 2005. in 2006 mom but my husband on the deed of the house. yes there are documents in local court house showing this was all done and completed. i do not know how hubby took control of the business. yes business was in FIL's name...i know hubby has a friend who is a lawyer and has been dealing with him. he is also the lawyer for the estate. no fil's estate never probated. opened but never closed. mil's estate is tied up in court because of other beneficiaries are fighting my husband for their share. the business has been faithfully paying this loan out of the business account (hey it is a write off for taxes!) so we are not behind on payments. so if i am to get an attorney would that be to protect me since my husband put the business in my name or just protect me in general? what type of attorney? i am just worried since i do not want my name or anything against me. my husband did all of this and then told me that my name was put on the business.
 

justalayman

Senior Member
=josephine johns;2225773]because of father in laws condition, mother in law leagally took fil off deed of house in 2005.
you did not answer the question.


in 2006 mom but my husband on the deed of the house.
how was this done? and how was title held by husband and MIL?
yes there are documents in local court house showing this was all done and completed.
but was it done legally? I can cram all sorts of documents in court to make things look legal. That does not mean it is.

no fil's estate never probated. opened but never closed.
then ownership of the business is definately suspect at this time.

mil's estate is tied up in court because of other beneficiaries are fighting my husband for their share.
then, depending on how title to the house was held, husband may not own all of the house. Heck, if probate for MIL has not closed, he actually doesn't own any of it other than his share unless the title was held joint with rights of survivorship until probate is closed.

so if i am to get an attorney would that be to protect me since my husband put the business in my name or just protect me in general?
Being this close to your husband, if he did something illegal, you will have a difficult time convincing others you were not aware of what was happening.


i am just worried since i do not want my name or anything against me.
then you should not have allowed husband to put the business in your name. That puts you right in the middle of it.
my husband did all of this and then told me that my name was put on the business.
Sorry dear but he could not do this without your approval.

I would be hunting for my own attorney right now. You need an attorney that is familiar with business law and probate law. In a really far stretch, (not enough info to determine) a criminal lawyer may be in your future. Not trying to scare you but there are some things that could be criminal involved here. You want an attorney for all your interests here, not just the business.

One big problem is FIL's estate was never probated. There could be claims against his estate that effectively wipe out the business as well as interest in the home. Yes, even if his name was removed from the title, he could still have interest in the home simply due to being married to his wife, who retained ownership of the home.

another huge problem is MIL's estate probate is not closed. I do not see how it could be closed until FIL's estate is probated. There are too many intermingled financial connections between MIL and FIL to probate MIL's estate without first probating FIL's estate.

if there are other bene's to MIL's estate, the house and the business are most likely not all yours or husbands.

You have a huge mess and it sounds like husband has not been above board in his dealings here. If I were you, I would find an independent attorney and find out what is going on.

what a mess!!!!!!!
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top