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


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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