Any way to freeze accounts / fraud

[thankyouforhelp]

I am new to these forums please let me know if I am posting in the wrong forum. I co-own a business "Business A" with my soon to be ex-husband. Business A owns leased equipment and has payments each month on this equipment. My husband also co-owns another business "Business B" with another individual. Business B had a verbal agreement (witnessed and known of by others) to pay a certain amount of monies from it's income to Business A. This agreement was not honored. The money was paid in to Business B and then withdrawn or spent by my husband (unbeknownst to his partner in the business), and the monies that were supposed to flow into Business A to pay for lease payments never came in. Do I have any legal recourse to freeze his accounts? He may be hiding the money in a different bank account that either I or his partner in Business B do not know about. He is also mentally unstable and currently has a restraining order in place.

Any help you can provide is greatly appreciated.

Regards.

[AFFA]

I wish to inform you that you can file a suit against business B for default and breach of contract. After judgment has been granted in your favor and if other party does not pay then you can have garnishment order. While enforcement either your husband or other person can be held to be personally liable provided business B is not a corporation. In case of partnership owners are personally liable to meet the obligation of business. The mental condition of your husband will be taken into consideration at the time of contract.

AFF

[goddessoflubboc]

Your only recourse will be based on what is in writing. Do you have a contract or other legal document stating so much money every month from B goes to A? (as an aside - if A isn't self-supporting why keep it?)

[thankyouforhelp]

Thank you for you answers, your assistance and expertise is greatly appreciated. You mention that the owners of Business B could be held personally liable - but is this NOT the case if Business B is an S Corp? Does it change if it's a C Corp? I know it's a corp just don't know if it's S or C. In this case, do I have any recourse against the corp or the owners personally?

Regards.

[Friend In Court]

Originally Posted by thankyouforhelp I am new to these forums please let me know if I am posting in the wrong forum. I co-own a business "Business A" with my soon to be ex-husband. Business A owns leased equipment and has payments each month on this equipment. My husband also co-owns another business "Business B" with another individual. Business B had a verbal agreement (witnessed and known of by others) to pay a certain amount of monies from it's income to Business A. This agreement was not honored. The money was paid in to Business B and then withdrawn or spent by my husband (unbeknownst to his partner in the business), and the monies that were supposed to flow into Business A to pay for lease payments never came in. Do I have any legal recourse to freeze his accounts? He may be hiding the money in a different bank account that either I or his partner in Business B do not know about. He is also mentally unstable and currently has a restraining order in place. Any help you can provide is greatly appreciated. Regards.

You may have grounds to have both businesses put in receivership due to your husband's current mental state and with the allegation he is not living up to agreements.

Since you have a divorce action pending, it would be proper to apply through the divorce action for an accounting of the businesses alleging he is squandering the assets of the businesses and marital community. Bank account information should be subpoenaed by your attorney by now as well as all the business records, income statements, profit and loss statements he may have filed with banks and to get the leased equipment, etc.

Depending upon the state you reside in, the marital community may have an interest in both businesses and it behooves you and your lawyer to be aggressive in discovery as you can. Also, you need to line up your witnesses for testimony as to the promises, representations and facts regarding Business "B".

[thankyouforhelp]

I will be consulting an attorney in person, but I thank all of you greatly for your valued advice.

This is a wonderful forum for law education.

Regards.