Question:
I recently bought into a business 50/50 partnership. Retail & Service. The tax id's still haven't been changed. Im still not on the bank accts. It's not run like a partnership at all. My partner is letting her house go into foreclosure. Will this effect the business? And me?
Answer:
Maybe.
If she has problems and there is action against her assets then the business will be pulled in. A foreclosure by itself will not be an issue. A deficiency judgment where the lender is trying to collect after they realized a loss on the foreclosure will attach to other assets.
It depends on how the business is organized and other details.
You need to get on top of the situation even if she was not having a present problem. Why help build a business when you legally are not a part owner but you are expected to perform as if you are an owner?
If you are not on any of the paper work how could it. She is the one responsible not you.
BTW jen you are gorgeous
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