Legal Question in Business Law in New York

Husband is Business' Business

When my sister in law and I began our business 2 years ago, we decided to take our sales and divide it by 3, taking a third each for our selfs and put the other third in the bank. Without my knowledge, and with the urging of her husband,she paid off our CC debt with their home equity loan. Now her husband is demanding I give up my 1/3 of the $$ to repay the $$ that was used to pay off the CC debt. I was not asked or even told about this transaction until her husband made a comment that now we work for him. What are my obligations to see that this money is repaid? Do I have to relinquish my share of the money to my brother in law? The business CC is in my sister inlaws name and I have no part in the ordering for the company. As it is, the $4,400 that we had in the bank for other bills, like our web page has been taken and given to her husband to put towards what ''we'' owe. What are my options now, and what am I obligated to do? I am tempted to tell them I will resume work after the debt is paid off. There is about $12,000 to go. It is a labor intensive job and I am tempted to go on hiatus until she alone pays off the $$, and not collect any salary at and not do any work either. I would like to keep this as civil as possible.


Asked on 3/03/07, 2:21 am

1 Answer from Attorneys
Carlos Gonzalez Gonzalez Legal Associates PLLC

Re: Husband is Business' Business

This question is a very complex one, and i will try and answer as fully as i can for you.

Primarily, there is an issue of the business liabilities... you and her alone are liable for these debts. If he has paid these debts off for you, without any other agreement to the contrary, your portion may still be seen as outstanding and due to him... however, this would not legally give him any control in the business... he may be seen simply as a creditor, and treated as such. You may wish to clarify this point to him.

Further, there is a major issue as to what form of company you have... a corporation, partnership, etc - and what the agreement you have made is, with regards to this company.

You may feel free to contact me for a free phone consultation for further information and clarification on this matter. you can reach my office by the email address provided below, or calling us directly at 2127098303 - you may also visit our website at www.cgonzalezlawfirm.com for futhter infrormation regarding business structures, which we have posted for free up there.

If you are still interested in building a site for your company your self you may also contact

[email protected] which is a company that provides such services for very low prices.

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Answered on 3/07/07, 10:37 am


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