What are my rihts if my husband is a partners in an LLC that owes me money?

UPDATED: Apr 15, 2013

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What are my rihts if my husband is a partners in an LLC that owes me money?

His company owes me a significant amount of money for secretarial/bookkeeping services over the last year. (I am an independant contractor). He owes the company money for personal purchase made against his equity. Can they legally keep a portion of my pay to cover my husband’s bill?

Asked on April 15, 2013 under Business Law, North Dakota


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

The answer is yes and no.

No in that they are not supposed to offset a debt to person A vs. an amount owed to person B--even if they are related--unless there is some agreement  to that effect.

Yes in that if they don't pay, your recourse is to sue for the money; and if you sue, they will in a court of law be able to interpose a counterclaim for the amount owed your husband--for example, they could name him as a party to the action--and will then be able to set off the money he owes them vs. what they owe you, so long as they can establish that you and your husband have joint finances. So if you try to push the issue, they can in a court of law seek the money from your husband--i.e. from the two of you jointly--and effectively then use it as an offset.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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