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?
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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 10 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.
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