Legal Question in Business Law in Massachusetts

Re: My husband's business

As a general matter, you cannot be held liable for debts you did not agree to incur (other than personal taxes due on joint returns); however, I would have to review all the documents (including documents relating to your individual and your spouse's tax situation) to give you a specific answer.

If your husband's name is on the deed, any creditor can obtain an attachment (with court approval) or judgment lien on the property, and the IRS could also file a lien. If you are also an owner of the property, the state of your rights would depend on the form your ownership took and whether and when a declaration of homestead was filed. Any lien now filed would be junior to the first mortgage you referred to.

Again, determining your rights is difficult if not impossible without an attorney's being able to review the documents upon which a claim may be based.

Re: My husband's business

Businesses are great sources of potential liability. IRS and creditor troubles can easily spread from the business to you (as a spouse) and all your assets. You might wish to consider conducting the business in a proper legal entity. Also, consider homesteading your home, or even placing it in a legal entity (a separate one) also.

Re: My husband's business

It is not possible to know, without more information, whether you are adequately protected.

In general, it is not unusual for small business owners to have the home owned by a spouse who is not involved in the business. In the alternative, a tenancy by the entireties protects the home against claims of creditors of one spouse or the other (but not against creditors of both spouses and or in certain situations involving "necessaries.")

Another manner to protect an interest in the home is via a Declaration of Homestead, which is executed and then filed with the registry of deeds.

In some cases, a spouse will be on the promissory note but not the deed, or on the deed but not the note, depending upon particular circumstances. The impact on other creditors will depend upon exact circumstances.

As far as the IRS is concerned, there are different issues, some of which would affect you, and some which would only affect your spouse. Obligations which he must pay as owner of the business, including business taxes and withholding, would be his personal responsibility. However, if you sign a joint tax return, your combined assets could be at risk if the information is false or he fails to pay the taxes.

In sum, generally a creditor cannot put a lien against property owned solely by a non-debtor spouse, or property owned as tenants-by-the-entirety, or property timely protected by a declaration of homestead.