Hi all,
this is my (our) second post on here, and hopefully this is in the right place!
My SO is in the middle of a divorce from his ex, and the question I have on his behalf is regarding a jointly owned business between the two of them. It was started during the marriage, the business name was registered under both their names, but the majority of the debts owing under the store's name is on a line of credit that is under his name only. He has told her that she can have the business, but only if she can pay off the debt owing under his name. The chances of her being able to do so are slim to none, and slim's out of town.
We have no idea what the laws are governing the splitting of a business in the event of a divorce. He is unwilling (and rightly so) to carry a large amount of debt under his name for a store that he will no longer run. Does anyone here have any information on anything like this? Could the sale of the business be forced to pay off debts? Is it considered a jointly owned property? How does this stuff work?
Any info on this type of situation would be greatly appreciated!
this is my (our) second post on here, and hopefully this is in the right place!
My SO is in the middle of a divorce from his ex, and the question I have on his behalf is regarding a jointly owned business between the two of them. It was started during the marriage, the business name was registered under both their names, but the majority of the debts owing under the store's name is on a line of credit that is under his name only. He has told her that she can have the business, but only if she can pay off the debt owing under his name. The chances of her being able to do so are slim to none, and slim's out of town.
We have no idea what the laws are governing the splitting of a business in the event of a divorce. He is unwilling (and rightly so) to carry a large amount of debt under his name for a store that he will no longer run. Does anyone here have any information on anything like this? Could the sale of the business be forced to pay off debts? Is it considered a jointly owned property? How does this stuff work?
Any info on this type of situation would be greatly appreciated!
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