I have been in business for about 10 years owning 50% interest in an incorporation. My business partner died and his spouse says he did not leave his interest to her. However her lawyer will not disclose any info to me. The company is on the brink of bankruptcy and she says she has 3 or 4 credit card bills that needs to be paid that are in her name but will not reveal if the balance reflects anything related to the incorporation. Can you help me find out how his interest will be dispersed if it is not in his will?
A: Your partner's surviving spouse would take your partner's entire interest in the corporation, unless your partner has children, in which case the spouse and children would equally divide your partner's interest in the corporation. And also do you think I am responsible for her credit card bills.
A: No. The only way that you could be liable would be were the surviving spouse to have transferred assets to you as a means of escaping payment of her credit card debt
.Also we are getting flooded with bills since his death and the money for the jobs have already been collected and the bills for materials have not been paid. He did all the office/paperwork part of the company and I made sure all the jobs were done as I over seen them daily.Where do I stand legally?
A: The fact that your partner is deceased is irrelevant to the corporation's creditors. If the corporation owes debts, then those debts must be paid, or the creditors can sue to try to recover from the corporation. The creditors cannot sue you personally, however, unless you have taken assets out of the corporation in order to avoid paying the corporation's debts.I had no idea our company was on the brink of bankruptcy as he told me 2 days before he died to bankrupt the company! I feel like I should try to pay all the bills I can before that.What do you suggest?
A: If the corporation has no asset
value, then you can simply inform the creditors that the corporation is insolvent, and that you cannot pay the debts. If the corporation is sued by a creditor, you can ignore the lawsuit, unless you are personally named as a defendant, because a judgment against the corporation cannot reach you personally. You can just close the doors on the business, distribute any remaining assets in proportion to the various creditors' bills, and then dissolve the corporation with the secretary of state and file a final tax return.
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