Business debt liability
I am in the process of divorce. My spouse is attempting to make me responsible for her business debt. She is the sole owner of an LLC and has accumulated a fair amount of debt. I live in a community property state. I have never co-signed anything, nor is my name anywhere in the business. Am I responsible for the debt her business has incurred?
Posted Dec 31, 2019, 12:09 AM UTC
That’s like McDonalds saying you owe them for their bankruptcy because you stopped being friends with the CEO. Your ex wife is just a piece of trash garbage, trying to milk you, because she is a complete failure in life and wants to blame someone else.
Ask your lawyer
Is she taxed pass through or as a Corp?
LLC’s in debt can be ignored. Business emails and address are abandoned, and it’s a dead company, but only if the business has no assets (business account, assets purchased, including land, computers, and other property).
Not your problem. They don’t count.
Isn't the whole point of an LLC to keep the debts only applicable to the business assets? Maybe she sees it as coming out of your end so it's like free cash for her business.
Yes for an LLC you don’t owe anything, the LLC does.. unless she signed with a personal guarantee which is likely. In that case if you benefited from income from the entity you likely also are responsible for the debt incurred. Def ask your atty.
If she wants you take half the debt, then she had better prepared to hand over half the business. Is it profitable or one of those bullshit MLM cults?