What to do if my ex-husband borrowed money from a neighbor for startup of a business but has not paid any of the debt back and now is suing both of us?

He had an LLC at the time but I was never a part of the LLC. However, I signed the hand written contract as a witness. She claims that I’m liable because I knew he was a bad rush. She claims that I was and accessory to the “crime”. She wants a lein placed on my property. I was awarded the property in the divorce. I don’t think I can be held accountable for this because I want a part of their business transaction and my home should be protected by the LLC but obviously I’m not certain.

Asked on April 4, 2015 under Business Law, Colorado

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

If the money was borrowed by the LLC, then the neighbor can only sue and try to recover from the LLC--and signing as a witness does not make you liable.

If it was borrowed by your ex-husband and not by you, she can sue your ex-husband and potentially reach any jointly owned assets of the two of you, such as a house.


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