joint owned business

[griffin]

What is the name of your state? NC
My STBX and I are joint owners in a new business. All loans/leases are in both names --- these were given to us based on his assets/SEP-IRA. I am working at the business full-time without salary and working a second job for income. He has put no time or effort into the buisness once the doors opened --- he has physically been to the business twice in the last 12 months.
The business is struggling and I'm tired of working 2 jobs. If the business folds, what financial recourse can I expect? The only asset I possess is a residential lot co-owned with my STBX.

 

[Ohiogal]

What is the name of your state? NC
My STBX and I are joint owners in a new business. All loans/leases are in both names --- these were given to us based on his assets/SEP-IRA. I am working at the business full-time without salary and working a second job for income. He has put no time or effort into the buisness once the doors opened --- he has physically been to the business twice in the last 12 months.
The business is struggling and I'm tired of working 2 jobs. If the business folds, what financial recourse can I expect? The only asset I possess is a residential lot co-owned with my STBX.

Pretty much nothing. Both of you will lose out. Both of you are responsible for the debts of the business as well as entitled to half the assets of the business. Which is marital property.

 

[griffin]

I understand that we are both responsible for the business --- but if I have significantly fewer assets, once that's gone, where to the lenders turn for the balance? --- My STBX.
If the business is to fold, is it to financial advantage for it to fold during separation (before divorce is final) or after divorce?
My STBX wants to step out of the business & give it all to me --- of course he does, the debts significantly outweigh the assets. I don't accept that & I'm certain the lenders wouldn't release him b/c he's the one with the assets.

 

[Ohiogal]

I understand that we are both responsible for the business --- but if I have significantly fewer assets, once that's gone, where to the lenders turn for the balance? --- My STBX.
If the business is to fold, is it to financial advantage for it to fold during separation (before divorce is final) or after divorce?
My STBX wants to step out of the business & give it all to me --- of course he does, the debts significantly outweigh the assets. I don't accept that & I'm certain the lenders wouldn't release him b/c he's the one with the assets.

Actually if he was the one whose credit is on the line as he provided the collateral then he is the one who stands to lose the most. You want it to fold before divorce however. At the time of the decree the judge could make you solely responsible for everything. And you could find yourself in contempt. And if it is a legal separation you may find yourself with problems as well.

 

[LdiJ]

Actually if he was the one whose credit is on the line as he provided the collateral then he is the one who stands to lose the most. You want it to fold before divorce however. At the time of the decree the judge could make you solely responsible for everything. And you could find yourself in contempt. And if it is a legal separation you may find yourself with problems as well.

How much money are we talking about in loans and leases? Are we talking about a commercial space lease?

Quite frankly, if you close the doors with a commercial lease open, you are talking about a rapid lawsuit from the landlord, and depending on the amount of money involved, you could both be forced into bankruptcy. It won't matter if you do it before or after a divorce or separation....it really also doesn't matter too much who has the assets in this case, because his IRA can't be touched. I suspect that the lender hoped he would not realize that they couldn't collect against that particular collateral.

Of course, both of your credits will be tanked, no matter who the divorce makes responsible for the debt. Commercial landlords are ruthless...they have to be.

 

[nextwife]

How much money are we talking about in loans and leases? Are we talking about a commercial space lease?

Quite frankly, if you close the doors with a commercial lease open, you are talking about a rapid lawsuit from the landlord, and depending on the amount of money involved, you could both be forced into bankruptcy. It won't matter if you do it before or after a divorce or separation....it really also doesn't matter too much who has the assets in this case, because his IRA can't be touched. I suspect that the lender hoped he would not realize that they couldn't collect against that particular collateral.

Of course, both of your credits will be tanked, no matter who the divorce makes responsible for the debt. Commercial landlords are ruthless...they have to be.

I agree with this. The LL can get a judgment and garnish future wages. Of both.

WHOSE idea was this business? Was it something you both wanted, or something one wanted and one went along with?