Ex Husband caused banking issues

I owned my own company prior to marrying my husband. In November 2007, I decided to add him to my business. He was unemployeed and I could use the help. Upon making this business a partnership, I had him open a new business account. Expecting him to open it as a Partnership, I continued to do business in the account. THere were no problems. Then early 2009 our relationship went downhill very fast. He wasnt working, seeking out new women and sitting on him butt daily. Mid April I was working with a client on a very large remodel project. I received a deposit from the client that was deposited into the bank account on April 20. During this time I had told my Husband that I was not happy in the relationship and was going to leave. On April 21, I had him go to Lowes and pick up the final load of products for the client valued at 2,027.00. He wrote a check out of the business account. Later that day I found out that he had removed my name from the account. I had NO access to the account. On April 22, he removed funds from the account for personal use and therefore the Lowes check was returned NSF. Since I was only a cosigner (found this out when he removed me) and was not an owner of the account, and since he signed the check to Lowes am I responsible for this check. He has admitted in emails that what he did was wrong and that he didnt want to go to jail over it. But now he is taking me to court over this. AM I responsible in any way???? I have proof that I deposited the funds originally, I have copies where he withdrew the funds. I was in the dark until the NSF notice came in the mail. Additionally, I have had to get a restraining order against him and I know that he is mad that the sheriffs department now has his guns. I think part of this is a retaliation as well. But PLEASE HELP!!!!

First of all, when he opened the new account in the partnerships name, the bank would have required the corporate papers in order to open the account. If he put you on there as a signer and he owns the account, there's not much you can do about access; BUT: if he took job money and used if for personal use other than to fund the project, that is CIVIL THEFT, and there are laws for that and presecuteable charges for an officer of a company using corporate funds for personal use. Since there is fraud involved here, you need to contact the DA's office and turn him in and file a complaint. If they tell you it's civil because of the partnership agreement and the relationship between you two, and they won't touch it, you are going to have to sue him for damages; but in the meantime you need a lawyer as fast as possible to draw up a new meeting of the minutes of the partnership removing him as a partner, or get something done corporate wise so that he can't take anything else. Good luck

And yes, if you are a signer on the account you are responsible for the account, along with him, he's also responsible for the account. If you signed the Lowe's check you are responsible for the check. Sorry

Just to let you know, I did not sign the check and he had already removed me from the account as a signer. So really at the time the check was signed, he was the only one on the account. But he is now trying to make me the responsible one. I honestly think that he has a few deep seated mental issues. But that is another story.

No, but it requires some explanation.

Only the person who signs the check, your husband, is responsible for the check itself. Therefore, only your husband faces criminal charges, and only your husband is liable for bank fees, and other fees associated with the NSF.

As a business partner, however, you are equally liable to Lowe's for the purchase price of the products. This assumes that the products were purchased in the name of the partnership. If your husband purchased the products in his own name then you are not liable to Lowe's at all.

As I mentioned, depending on the facts you could both be liable to Lowe's. But, between you and your husband, he is liable to you. So, if you end up having to pay anything to Lowe's, then you can seek full reimbursement from your husband.

Note that my answer assumes that you actually had a partnership. If your business was some other kind of entity (such as a corporation or LLC) then your personal liability to Lowe's would likely be lessened.

Are you still operating the business or is he? If you are, open a new checking account with your business EIN, without him on there as a signer. Then get your corporate minutes done and talk to the attorney about removing him from the company. Those two things done, you still need to address the Lowe's check issue, as John said, you are responsible if it was a business purchase, but if he wrote a check for personal purposes with a corporate check with no valid explanation, he is committing fraud or at the very least the purchase gets charged to his distribution account on the books and ends up on a Schedue K at tax time.