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Tuesday, December 09, 2008

Can I Get My STBE Off My Business Lease?

This post spawned the following question:

Q. I am currently renting space for my business. My soon to be ex girlfriend is on the lease as well. Is there any way for me to have her name removed from the lease and I will continue to pay the rent on my own as I have always done? Is is necessary to rename my business and have the landlord provide a new lease with the new name?

A. I'm assuming from what you write that your soon-to-be-ex (let's call her your STBE) is not a partner in the business or otherwise connected. If she's not, you shouldn't have to worry about the business -- unless she's going to litigate with you over use of the name, or who gets the business, or she claims she is a part of the business, or a million different other things....wow, it gets complicated, doesn't it? But, for the sake of argument, let's assume it's your business, and she has no claim to it.

You can get her off the lease by asking the landlord to give you a new lease, with you (or the business, depending on how the lease is drafted) as the sole leasor. However, the landlord might not be inclined to do that because, as I mentioned in the post that spawned your question, the landlord has both you and your STBE on the lease, so he can go after either of you for rent.

For example, if you were having trouble making rent one month, he could go after your STBE. Of course, then she'd come after you for your share, and could even sue you for your share (depending on how ugly things were between you -- which is why it pays to play nice). From a legal perspective, it's better for the landlord to have two folks on the lease; he can collect from either.

However, if you can convince your landlord that you'll make good on the rent, and that there won't be any problems in the future (and maybe offer him additional security on the lease), he might be willing to take her off the lease and leave only you on it.

Of course, the parts of this scenario I don't know can complicate things. For instance, if she actually does have a piece of the business, and the lease is in the business's name, you might have to buy her out to get her off the lease and out of the business. Or, she should claim to be part of the business, even if she's not, which could also lead to litigation.

You definitely should have a landlord/tenant lawyer take a look at the lease. It would be worth a few bucks for an initial consult if you've got a complicated business/social thing going on. Good luck.

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