Legal Question in Business Law in New Jersey

Rights of Spouse: Equal Owners s-Corporation Funds Misappropiations

My wife is an equal partner in an s-corporation. It has come to our attention that her partner has been paying approximately $2000/month worth of credit card and household expenses through the business for the past 3 years. Much of time my wife did not even take her salary and never paid any personal expenses through the business.

Currently, they are fighting over accounting for the funds. My wife is looking to equalize the total compensation and to exit the business relationship. Unfortunately, her partner is fighting her every step of the process and even refuses to provide required documentation.

My question is, "Do I, as an individual and source of my wifes investment capital, have any legal recourse?". May I start legal action on my own and what is the prognosis?

Thank You,


Asked on 9/09/99, 3:54 pm

1 Answer from Attorneys
Robert Gleaner Robert A. Gleaner, P.C.

Re: Rights of Spouse: Equal Owners s-Corporation Funds Misappropiations

Prognosis is difficult to assess at this point. You need to retain an attorney immediately. A suit needs to be filed with a request for immediate restraints against any further disposition of assets, with a request to restrain the partner's personal assets as well, since it appears that she may have been converting business assets into personal assets. Time is of the essence. If you want to speak with me, call me at 609-546-8010. Good luck!

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Answered on 9/10/99, 9:31 am


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