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<DIV>This is an estate planning type question.</DIV>
<DIV>W is a client whose husband’s business corporation appears to be raking up
a lot of business debt. This is a second marriage and they have tried to keep
their finances separate, in fact the income from the business has been used for
community benefit (food, electricity, vacations etc.). W has a separate
asset she wants to protect (farm land given by dad). H&W never did a
pre-nuptial agreement. Been married 10 years+.</DIV>
<DIV> </DIV>
<DIV>H&W thought a ante-nuptial agreement might help protect W’s
separate asset. H had it drawn up and W was referred to me as her
independent attorney. This is a standard type of agreement where on
schedule “A” the business corp is listed as H’s, and W’s is listed as her
separate asset.</DIV>
<DIV> </DIV>
<DIV>My thought is that basically, as long as they are married, or as long as
they do not have a separation decree, that whatever they sign between them
won’t help against creditors. (just like the client who has to pay a
community debt even after that debt was listed as the responsibility of the
former spouse in a dissolution decree). If I were a creditor’s attorney I
would ask the court to pierce the corporate veil and determine that the corp is
a community asset and the debt is a community debt and go after all community
property, again without regard to this agreement.</DIV>
<DIV> </DIV>
<DIV>I think if ever sued, judgment would be entered against H&W and their
marital community, and the separate farmland wouldn’t be affected anyway.
If a creditor tried to get a judgment against W’s separate property, then she
could hire an attorney and get the court to enter a judgment only against the
community and community property, with or without an agreement.</DIV>
<DIV> </DIV>
<DIV>Anyone think a ante-nuptial agreement would be a substantial protection for
W against business debts, even if H is a sole shareholder?</DIV>
<DIV> </DIV>
<DIV>Josh Grant</DIV>
<DIV> </DIV>
<DIV style="FONT-SIZE: 12pt; FONT-FAMILY: 'Calibri'; COLOR: #000000">Joshua F.
Grant, PS<BR>Attorney at Law<BR>P. O. Box 619<BR>Wilbur, WA 99185<BR>tel 509 647
5578<BR>fax 509 647 2734<BR></DIV>
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