How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask NateLawAnswers Your Own Question
NateLawAnswers, Attorney
Category: Legal
Satisfied Customers: 10685
Experience:  Over 8 years of legal practice.
Type Your Legal Question Here...
NateLawAnswers is online now
A new question is answered every 9 seconds

I have an investor for clothing line (not start-up). From the

Customer Question

I have an investor for clothing line (not start-up). From the beginning my company operated at a loss. When I got him to invest, I needed someone that was willing to stick with it and give loans based on recievables. The problem is the way that it is written up, is they are based on his approval. He was dating my friend (he is married) and now that he is done with her, he wants it all now. I am finally at the point where I am covering my cost, now it is just a matter of turning a profit to pay him back. I am know that if I continue, I will be able to do so. But with him pulling out this minute, he would make it impossible to do so. I am also worried that he would be able to come after my husbands money (we don't share finances) is that possible? Is he allowed to renege at anytime like that?
Submitted: 5 years ago.
Category: Legal
Expert:  NateLawAnswers replied 5 years ago.
Thank you for your question.

First off, your husband is safe from your debts. Don't let that keep you from sleeping.

He can't just pull out of the investment, but is subject to the terms of his investment. What does your investment agreement say?

Nathan Moore
Customer: replied 5 years ago.
Well thats good news.

I have a 3 tier investment.

First was equity investment, second was a loan with very high interest, and third was account recievables. The problem is he has it so he can charge me a fee off 5,000 every 6 months (on 75,00 loan, which I have made payments on time every month), which I didn't know about, and he hasn't charged me since him and my friend were still messing around. I haven't borrowed any money in 6 months, I have just been refinancing my receivables with new one's, in which he also charges a 3% facility fee and then 15% interest for only 90 days. I am afraid he is going to make all of this do at once, in which case I would not be able to fund my new orders. And also leave it impossible for me to continue or payback.

On another side note, in the agreement he was also supposed to counsel/mentor me two hours a week which has not happened. The only time I hear from him is when he wants clothes for one of his new chicks. And now that my friend is no longer seeing him, he has decided to enforce all these new fees and renege on receivable loans.

I want to pay him back, but I need him to continue on his original agreement to do so.
Expert:  NateLawAnswers replied 5 years ago.
You've got him waiving conditions of the agreement. You also have him breaching it by not counseling you. If he demands to withdraw his investment, you're in strong position. He can't make it all due at once due to his waiver.
Customer: replied 5 years ago.
My investor is saying that the loan is personally guaranteed, can he still go after my husbands money?
Expert:  NateLawAnswers replied 5 years ago.
No. Your husband's assets are distinct and separate from yours.
Customer: replied 5 years ago.
Even in the state of california with a personal guarantee? I have read online a couple places that it would be both our debt, so I just want to be sure, because at this point he is threatening to go after him, and all I want is to continue business, as we are finally at the point where I am pulling in a good amount of sales.

My husband's salary is easy to find out, so I think he thinks he can just get a big pay out. Even if he could go after his money, is there a way to block it so I would just be able to make payments so my husband wouldn't be brought into this. My husband is fully aware of the situation, I just would never want something I did to effect him like that...
Expert:  NateLawAnswers replied 5 years ago.
The debt obligation does not transfer to him at all. You cannot create debt for your husband no more than he can for you. The only way it would be his as well is if he signed the document.
NateLawAnswers, Attorney
Category: Legal
Satisfied Customers: 10685
Experience: Over 8 years of legal practice.
NateLawAnswers and 2 other Legal Specialists are ready to help you
Customer: replied 5 years ago.
This is what another attroney said, this is why I am so confused because it is the exact opposite from what you are saying. Any thoughts?

As noted above, if any of your husband's assets were premarital (not earned during the marriage), the may be separate and untouchable by the creditor to whom you owe money. However, your community assets, if any, would be at risk.

My husband and I do not share any finances. That does not define if they are community property. For instance, income earned during the marriage is community, generally.

I just want to make sure my husband is safe in dealing with him, Again, and assets 'of the marriage' are subject to potential creditor claims.

as I would never want my husband to be accountable for my mistakes. So I did sign a personal guarantee, I do live in california... any suggestions? I'd urge my husband to keep his premarital assets separate, but your debts ARE a risk for your husband, to the extent that you have community property - things/money accumulated during the marriage - that is the flip side of living in a community property state.

If we are talking a huge debt to this lender that you do not plan on paying back, you may want to consider consulting with asset protection specialist, both you and your husband, since California law leaves him at risk here.

Good luck.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Previous | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Not only did he answer my Michigan divorce question but was also able to help me out with it, too. I have since won my legal case on this matter and thank you so much for it. Lee Michigan

Meet The Experts:

  • Tina



    Satisfied Customers:

    JD, BBA Over 25 years legal and business experience.
< Last | Next >
  • Tina's Avatar



    Satisfied Customers:

    JD, BBA Over 25 years legal and business experience.
  • Ely's Avatar


    Counselor at Law

    Satisfied Customers:

    Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
  • JPEsq's Avatar



    Satisfied Customers:

    Experience as general attorney, in house counsel, SSDI, Family Law attorney, and law professor
  • Law Educator, Esq.'s Avatar

    Law Educator, Esq.


    Satisfied Customers:

    JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
  • FiveStarLaw's Avatar



    Satisfied Customers:

    25 years of experience helping people like you.
  • Guillermo J. Senmartin, Esq.'s Avatar

    Guillermo J. Senmartin, Esq.


    Satisfied Customers:

    7+ years of experience handling various legal matters.
  • Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.


    Satisfied Customers:

    Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.

Related Legal Questions