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I would like to know if there is anything that i can do about

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my husband who is my...
I would like to know if there is anything that i can do about my husband who is my partner in an LLC 50/50 who opened a new business account to deposit our funds in without my name listed.
Submitted: 5 years ago.Category: Business Law
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3/12/2012
Business Lawyer: J.Hazelbaker, Attorney replied 5 years ago
J.Hazelbaker
J.Hazelbaker, Attorney
Category: Business Law
Satisfied Customers: 4,385
Experience: Experienced and trained in the area of business law.
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J.Hazelbaker :

Hello. Thank you for using JustAnswer.

J.Hazelbaker :

Under Alabama law, your husband/partner's taking of company funds and depositing them in an account in a manner to exclude you and without your consent would be considered a breach of fiduciary duty and conversion of company assets.

J.Hazelbaker :

Thus, if he refused to return the funds to a company account or to make you an authorized user of the second account, you could sue him to force such action.

J.Hazelbaker :

Please let me know what follow-up questions you have. If my above responses have been helpful, please click Accept so that I get credit for the time/effort. You may always restart the thread and ask follow-up questions at any time by clicking the “Reply” button at the bottom of the question/answer thread. You can access this thread later in your profile under the “My Questions” tab.

J.Hazelbaker
J.Hazelbaker, Attorney
Category: Business Law
Satisfied Customers: 4,385
Experience: Experienced and trained in the area of business law.
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Customer reply replied 5 years ago

Mr. Hazelbaker,

 

Thanks for your earlier reply , i was wondering if you might be able to advise me on ways of separating myself from my husband and our business. I understand this would be several questions and I'm willing to pay you for your service. Not exactly sure if I'm using this questioner in the correct manner. I didn't want to just post a question not clear on how to keep the same attorney. Any response appreciated.

 

Patsy

Business Lawyer: J.Hazelbaker, Attorney replied 5 years ago

I would be happy to help you.

The first step depends on whether you are going to pursue legal action with regard to his previous actions of converting the business funds.

If you do, then you can include a claim to dissolve the company, sell the assets, and distriubte them according to ownership interests.

If you don't sue on the funds conversion, then you would first demand that he return the funds and agree to a dissolution. It would be could to create a paper trail of your requests and documenting his refusals. Ultimately, you may have to sue him, but doing so might give you leverage to negotiate separation terms that allow you to continue the business (e.g. he agrees that you will receive client contacts and he will not compete against you).

In order to go further, it would be helpful to know the type of business and whether there are significant assets owned by the company and whether there is significant debt as well.

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Customer reply replied 5 years ago

I tried to "accept answer" it refused me. Do you wish for me to continue repling?

 

Thank you for the feedback.

 

My husband and I have had several emails between us, so i do have that. I do plan on making one last request for him to put my name on the account and if he refuses i feel i have no other choice but to sue.

 

1. This property is a good investment for our retirement and being a cancer survivor, taking draws from our business seems the best for me, besides, he doesn't care for me to be there and frankly neither do i. Other than Monthly reports that he creates, what can i do to be assured that this information is true so that my draws will increase as the business funds do. If this is impossible to do ? Is this the right thing to do?

 

2. He normally files our taxes together, but now he threatens me with a 1099 on the 3000/Month he is offering. I am asking for 6000/Month and he/or company continue paying the medical cost. With him continuing managing the business. (at this time he is not taking his management fee of 5k/Month and i 'm not sure how he pays his bills, probally through company. I ask for him to Share reports with me Monthly.

 

3. Maybe i should do a will so that upon my death the company can to be sold for my children.

 

4. Being the swred business man that he is, i know what it is that he is capable of.

He had sold his shares to me to avoid garnishment and said to me that it would be worse than a divorce if i didnt give them back.

 

The property is a 170 site with about 100 manufactured homes for rent or lease to purchase. I say about 25% is lease to purchase. Our expenses for the property is around 20-25k/Month. The property is making around 50k/Month. The property is worth about 3 Million with a 900000. mortgage. I like the ideal of negotiating separation terms

just don't know what to do next.

 

Sorry for the choppy writing , there is so much to say and not sure of what to say.

Business Lawyer: J.Hazelbaker, Attorney replied 5 years ago

You may need to post a new question and request me.

I'm not sure why you were not able to Accept.

Either way, I will be able to spend some time on your last follow-up later this morning and will respond. Thank you.
J.Hazelbaker
J.Hazelbaker, Attorney
Category: Business Law
Satisfied Customers: 4,385
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