If my husband’s contracting business is incorporated, can I be sued as a wife?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If my husband’s contracting business is incorporated, can I be sued as a wife?
I have never signed any agreements.
Asked on August 8, 2017 under Business Law, New Jersey
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
If it is incorporated, you cannot be personally sued in any event if you are not an owner (e.g. shareholder) of it, except for anything you personally did wrong in the course of the business. (E.g. say you work for the business as a bookkeeper, and say you misapplied a client's payment--the business could be sued, of course, but you could also potentially be personally sued for what you did in misapplying the money.)
Also, the corporate form or structure should generally protect your husband's and family's assets from most business-related lawsuits or liability unless your husband does not "respect" the corporate form (e.g. he comingles family and company money and doesn't keep the books/accounts separate); if that happens, then it's possible for someone suing the business to "pierce the corporate veil" and sue any owners, like your husband, personally. If your husband were to sued personally, that would also affect his share of family or marital assets. (Also, he can be sued for any company debts her personally guarantees, such as if he guarantees a loan or line of credit to the corporation.)
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.