QUESTION
What are the pitfalls of starting a business when you are still married and in the middle of divorce?
Asked on Mar 29th, 2014 on Divorce - Rhode Island
More details to this question:
I will be investing in my brother's new business but I'm concerned about the fact that his divorce is not final. No marital assets are being used to start the business, but several family members are helping with the startup expenses (our family, not hers). They have been separated for over a year and are filing the divorce paperwork on their own, no attorneys.
2 ANSWERS
Dispute Resolution Attorney serving Seattle, WA
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Law Offices of Helene Ellenbogen P.S.
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I suggest that your brother get smart and gets an attorney to finish this divorce. The sooner the better if he wants to start a business.. There are things he can do to protect the business from being pulled into the divorce, but this would require knowledge of what's involved and most importantly, clear documents between himself and the lenders of money in the family. If he doesn't have the money for an attorney, then he isn't ready to start a business either. The kindest thing the family can do under those circumstances is to loan him money to pay attorney's fees to finish the divorce.
Answered on Apr 02nd, 2014 at 8:31 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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No attorneys, high risk. Seek counsel or you portion of the new business is at risk.
Answered on Apr 01st, 2014 at 4:48 AM