Full question:
My husband is self-employed. He doesn't want me involved in any aspects of his business. He told me today that we may have to file bankruptcy. I stated that his business may have to file bankruptcy, but not me personally. As far as I know, I am not included on any loans or other means of security with his business, but I'm not sure. What legal right do I have to receive copies of financial statements regarding his business? Am I liable for anything if I have no prior knowledge regarding this situation?
- Category: Bankruptcy
- Date:
- State: Texas
Answer:
Business records are typically not public and require a legal process to obtain if you are not entitled to them under the company's bylaws. In a legal proceeding, you can request business records through discovery or a subpoena duces tecum.
If you and your spouse are jointly liable for any debts, your husband's bankruptcy may not relieve you of that liability. Creditors can pursue you for payment unless the bankruptcy is filed under Chapter 13, which provides some protections for co-debtors (11 U.S.C. § 1301). Additionally, a bankruptcy filing can impact your credit record if you have joint debts.
Marriage does not automatically make both spouses liable for debts. Liability arises from agreements, such as being a co-signer or joint account holder. However, filing a joint tax return makes both spouses jointly liable for any taxes due, even after divorce. The IRS can collect from either spouse, regardless of divorce agreements regarding tax responsibility.
There are options for relief from joint tax liability, including Innocent Spouse Relief, Relief by Separation of Liability, and Equitable Relief, depending on the circumstances of the tax owed.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.