If my husband owns a business that has alot of debt, are we personally liable for the debt if our money is in a family Trust?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If my husband owns a business that has alot of debt, are we personally liable for the debt if our money is in a family Trust?
Also, I am receiving some money from a family building that my parents owned. How can I keep that money separate from my husband?
Asked on September 5, 2013 under Bankruptcy Law, California
Answers:
Nathan Wagner / Law Office of Nathan Wagner
Answered 11 years ago | Contributor
Is your husband's business operated through a corporation or LLC? If so, you personal assets would be protected (unless you and/or your husband personally guaranteed any business loans).
The family trust probably does not protect the assets, especially if it is a revocable trust (as most family trusts are).
You can keep the money from your family separate simply by keeping it in a separate account in your name only, as separate property. Whether that will protect it from creditors depends upon the laws of your particular state.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.