Business issue with a family member..?

why do you think this person has 200k to invest? They are adept at ballbusting and leaving people to cleanup the mess. Contact a small business attorney and they will help you solve this problem immediately. You are a fool if you sign the doentation for personal liability without consulting a lawyer. Also, an investment is just that, an investment. What this person provided was not a loan in the eyes of the law as there is no material doentation giving "life" to the loan. You have a strong case, but do not be foolish enough to deal with this person as a family member until you have protected yourself in the business sense. And remember, unless you are embezzling or doing something illegal, having her take you to court is a good thing!