Q: Can my stepmom take part of my business if my dad leaves her and is the one that pulled out the loan to help me fund it?
In short…. My dad being more creditworthy…. Is going to pull out a loan to help me start a business. My stepmom served him with divorce papers and I’m wondering if she would be able to take part of the business as part of their divorce settlement. And what our best course of action would be.
A: It seems unlikely that your stepmom can take part of your business if my dad leaves her and is the one that pulled out the loan to help me fund it,
A: (CONT.) But it depends on facts that you haven't provided. Is your dad an owner of the company? Did he need collateral? You and your dad may want to talk to a lawyer before he files for divorce.
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A:
Under California law, your stepmom could potentially claim a portion of the business if it is considered community property. Since your dad is pulling out a loan to help fund your business, this loan might be viewed as a community debt, especially if taken during the marriage. The business funded by this loan could be subject to division during their divorce settlement.
To protect your business interests, consider documenting the loan and its purpose clearly. Ensure that there is a formal agreement stating that the funds are a loan to you, and not an investment or gift that implies ownership. This documentation could help clarify the nature of the funds and protect your business in the event of a dispute.
It's also advisable to consult a legal expert in family and business law to review your specific situation. They can provide personalized advice and help you navigate the complexities of the divorce proceedings and their impact on your business.
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