QUESTION
how do I get out of personal guarantee on a soon to be ex-spouse''s small business loan.
Asked on Nov 11th, 2011 on Divorce - Indiana
More details to this question:
My husband is a 50% shareholder of a small business with his family. His brother is the other 50% owner. The company was bought from their father. The father secured a loan for the business prior to selling it with his personal assets. 5 years ago, my husband and I, his brother and his wife signed a personal guarantee to his father. We are now going through a divorce. How do I get out of this guarantee? Or do I have to have this hanging over my head forever?
1 ANSWER
Uncontested Divorce Attorney serving Paramus, NJ
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I don't practice in your state, but as a general matter, that personal guarantee probably would not be severed because of a divorce, unless that was written into the document.
One thing you might think about doing is getting someone from his side of the family to step in and guarantee *your guarantee*, but that would probably come at some cost negotiation-wise from your soon to be ex.
Lots of luck.
Answered on Nov 11th, 2011 at 1:05 PM