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

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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

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 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.


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