Spouse liable for Sole Trader Debt?

A

accsvalue

Registered User
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51
If a sole trader is insolvent and owes money to taxman and suppliers can his wife be chased for the debt if she has savings/assets in her own name, even though she had nothing to do with the business?

Thanks
 
Nope. She is liable only for debts in her own name or in joint names.
 
Time said:
Nope. She is liable only for debts in her own name or in joint names.
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Unless it can be shown that the assets were provided by the husband from the resources of the business in the recent past.
 
Time said:
Is there any case law to back up that assertion?
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Haven't there been a number of cases in the last couple of years where transfers of assets by individuals (mainly developers) to their spouses have been set aside by the courts?

That's what I assumed Padraigb was referring to, siphoning off assets to your spouse to avoid your creditors...
 
In general unless any skulduggery can be proved, the wifes assets are off limits.
 
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