Waiver of claims in Commmunity Property State?

[razor]

Regarding Arizona business formation...

I am interested in going into business with a partner, who lives in a community property state (Arizona). Simply put, her husband is a LOSER, and she is likely to divorce him in the next few years. For family reasons (her children), she will not be able to undertake the divorce this year.

I do not want to build this company with my partner and then have her husband take half of her equity at a future date. My partner believes that she can get her husband to stay out of the business and agree to make no future claims on the business.

Question: Is there any document that may be signed by the husband (a "release" or "waiver of future claims"), under which I will not need to worry about having the husband own part of my business?

Thanks!

 

[clueless3]

I do not want to build this company with my partner and then have her husband take half of her equity at a future date. Question: Is there any document that may be signed by the husband (a "release" or "waiver of future claims"), under which I will not need to worry about having the husband own part of my business?

If you set up your business CORRECTLY in the first place, there is no need for any kind of release or waiver. Why? Because anyone can OWN part of a business, but ownership does not imply being able to RUN that business on management level. Anyone can OWN part of IBM (by buying IBM stock), but just because he/she owns part of IBM does not mean that he/she can dictate how IBM run its business on a day-to-day basis. If you set your business up correctly, you should not worry about what the owners can and cannot do on day-to-day management.

The important thing is to separate the OWNERSHIP from the MANAGEMENT. You should have Agreements set up to specify who can and cannot do what. If your partner is an OFFICER of your company, he/she is responsible for its operation in accordance with the Agreements. His/her spouse should have NO SAY whatsoever as how to run it (indirectly perhaps, but not directly), if he/she is not part of the management team, whether or not he/she is part owner.

If your partner's spouse will take half of your partner's share of the company in the future, let it be. You can't control it, and it doesn't make any difference anyway, does it?? Yes, you can make the spouse sign some kind of release or waiver, but it probably won't fly in front of a divorce judge, and the spouse will end up owning part of the company ANYWAY. If you feel so badly about this partner, pick another one!