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NateLawAnswers, Attorney
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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: 6 years ago.
Category: Legal
Expert:  NateLawAnswers replied 6 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 6 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 6 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 6 years ago.
My investor is saying that the loan is personally guaranteed, can he still go after my husbands money?
Expert:  NateLawAnswers replied 6 years ago.
No. Your husband's assets are distinct and separate from yours.
Customer: replied 6 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 6 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.
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Customer: replied 6 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.