Legal Question in Business Law in California
Liability
Wife owns business with a partner. We are obtaining a divorce. She won't give me any info of profit and loss except a loss to our income tax person. Am I liable for this & how do I get released from liability?
2 Answers from Attorneys
Re: Liability
Once you file for divorce each side must turn over documents as part of the process or the court will order her to do so. You are responsible for actions she took during your marriage and any liabilities unless you had a prenup or the liabilities are backed by her separate property during marriage. You absolutely shoudl be entitled to this information.
Re: Liability
I agree with the previous answer, and would also like to make a couple additional observations.
First, don't confuse "loss" and "liability." A business can have a loss without liability and vice-versa. The distinction is the same as that between "profit" and "asset." Well, sort of....
Next, the date of separation may make a difference in community liability, and hence your liability, for losses incurred by your wife's partnership business.
Finally, aside from disclosure requirements in divorce court, couples owe each other a fiduciary duty to disclose and confide during marriage.
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