My wife is starting an online business selling household goods .She intends to do this via a limited company in which she is the sole director.She has no assets in her name apart from what is in her bank account. All assets including the house that we live in are held in my name .I am also a sole trader and the business is in my name.
The question is one of possible litigation if in the unlikely event, a customer sues my wife after buying a product .Lets assume that product catches fire and burns the customer or damages property etc
I would like to know if my wife would be PERSONALLY liable in such an event or would liability rest with the company .
Since my wife has no other assets in her name , would asssets owned by me as her husband ever be at risk ?
Hi Jenny, I have just started back at work and have a further question which I will ask this evening when I get back home
Hi Jenny, My original question also asked if I as my wife's husband or my personal assets could be at risk in the event of litigation. I have made clear that my wife will be operating her company independent of me and has no assets in her own personal / joint name with me.
I also wanted to know, within the context of product litigation/liability , whether potential liability can extend to the assets of the spouse. I would hope that all liability rests with the company itself period ?
Hi Jenny , many thanks . But am I right in assuming that a company is a legal entity in itself independent of the director and as such carries any liability ?
My wife is also thinking of selling in the USA . Do you know if the same legal parameters as the UK are valid there too ?