Please help! My husband has ADHD and likes to be in business for himself. He has had several businesses that have failed. He has claimed bankruptcy in the past and wants to start another new business. I need to know how to protect our "nest egg" from his businesses. We have two small children and I need to know how to protect our personal assets. My husband has taken out a personal loan/line of credit in his name only. He says the loan doesn't affect me since it's in his name only. Is this true? Am I responsible for his loan because we are married? What kind of lawyer should I talk to? I am the one paying the bills and the mortgage is in my name. I am tired of worrying about how his financial decisions can impact our family and I need legal advice.

I'm not a lawyer and I don't live in the US.

If the business(s) are in his name, and the loan is in his name, and your name isn't mentioned (e.g., you're NOT a business partner, guarantor, co-signer etc), then he is the only legal entity that anyone can pursue if they want their money back.

Plus I don't know about bankruptcy laws in the US et al, but in Australia, they can't take your primary dwelling, household items etc. They can take cars, but tend not to as there is not much return for them to do so. Anywho, if the mortgage is in your name etc, then it cannot be touched.

Best person to talk to would be your husband's accountant (which I HOPE he has).

Hello Married,

I am a lawyer, but not in your state. You want to talk to a corporate lawyer and have your husband's business interests arranged in such a way as to shield his personal assets as much as possible. I don't know MI law, nor do I know bankruptcy law, but I'd hunt down a mid-sized law firm (up to 50 lawyers or so) that states that it has a corporate practice, in addition to whatever else the firm does. I wouldn't go with a really small firm unless you get a good referral to them. (Not that there aren't lots of good ones out there, but without a referral, you just don't know what you're getting.)

Good luck.

Sandy

I'd be very concerned about the personal loan. I'm no lawyer, but I do have very bad credit and I disclosed that to my now-husband way before we got married, because I was told it could greatly affect his credit rating. I also watched my mother struggle to pay off all of my father's debts before *and after their legal seperation, since she was considered equally responsible for them and he wasn't paying a dime. That was a very long time ago, so I don't know if things have changed, but it's scary enough to seek legal expertise!

I'm NO lawyer, but make sure he incorporates his new business or forms a limited liability entity. Hopefully, the house is titled in your name alone (or in an entireties tenancy, if available). Make sure neither you nor the house have anything whatsoever to do with his business. :cool:

P.S. I agree with whatever Sandy says.

Thanks to everyone responding my to request for legal advice. I live in Michigan and I am going to have to find out what applies to married couples here since it varies state to state. I appreciate all your responses.

It does vary state to state, but no matter what type of state you are in, you would do well to have your hubby's business interests organized in such a way as to protect his (and thus your) personal assets.

Good luck