I owned a small business during our marriage and put my wife on as co-owner merely out of respect and not as an indication of the work she provided. The business failed and now we are heavily in debt.
She wants me to take full ownership of the debt, but I cannot realistically accomplish that with the amount owed.
How will the judge divide the business debt?
As a general rule, joint owners in a business share jointly in the debt of the business. Regardless of whether your wife is merely a straw owner in your business or not, it is imperative that you do not change anything concerning your assets until the judge determines how the business debt should be divided.
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The fact that you only made your wife an owner of the business out of respect may factor into the judge’s decision in determining how to split the debt, but that decision should be made by the judge.
Any large changes in your business now will raise the judge’s eyebrows during your divorce.
Remember, I am unable to provide you with anything more than divorce tips for men, so please consult with a divorce lawyer in your jurisdiction.