Couples and Debt

Hi!

I am pretty confused by Irish family law, so would greatly appreciate your input.

Situation 1: My boyfriend and I recently quit employment as we are trying to start a new business. I have enough savings to last us a year or two. He has a lot less savings. We don't have any other assets. Obviously I trust him but common sense tells me to put things on paper.

Q1. Is there any agreement/contract we could enter into where essentially he takes a loan from me? Any alternative solutions?

Situation 2: Let's say we were married. I decide one morning that I want to be a developer (or whatever). Borrow 100 million euro from the bank in my name. Build a bunch of houses.

Q2. If I die the next day, can the bank come after him for the 100 million?

Thanks very much

Q1, always advisable to put things in writing for business.

Q2, he's not liable for what you borrow, whether married or unmarried.

That very brave to give up jobs, best of luck. Don't let the stress break the relationship.

Your personal relationship is one thing, ownership of a business is another and you should have some sort of formal structure in place to cover off your business arrangements. Likewise, if you borrow money, the business should be borrowing it, not you as private individuals. Countless posts on here about people giving personal guarantees, mortgaging houses etc to keep a business going and it all ending up in tears

If you are subsidizing your boyfriend in terms of living expenses etc, that is a different matter.

Suggest you go and talk to you Local Enterprise Office as a starter, they can give good advice and support as well as courses on running business and financial aid

If you both recently quit PAYE employment you should seriously consider the Revenue SURE scheme: "Startup Refunds for Entrepreneurs".

You could both possibly obtain a refund of all income tax you have paid for the past 3 years provided you comply with the following conditions:

• You must make an investment by purchasing new eligible shares
• You must hold the shares for a period of 3 years from the date of issue.
• You must hold at least 15% of the issued share capital of the company for 12 months after the issue of shares, or if the company is not trading at that time, from the date it begins to trade.
• Your income from previous years must have been mainly liable to PAYE. However income in the year immediately before the investment can be from any source.
• You must enter a full-time employment for a 12 month period with the company as an employee or a director starting either within the year in which the investment is made or if later, within 6 months of the date on which the share issue is made.

Check out the Revenue web site for further guidance.

Jim Stafford

Thanks very much all, that's very helpful.

So if I am essentially subsidising his living expenses (separate from our business expenses), what would be the most relevant way to put this on paper? I was thinking of having him borrow money from me in a long long term loan (e.g. 20-30k over 10 years). I don't plan to enforce it as such, but if we break up, the sky falls, etc, I will have something to say I am owed money. Is that possible? Thanks