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  1. #1
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    Oct 2014
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    Default Division of the Proceeds of Loans Made During the Marriage

    My question involves personal finance in the State of: California

    My spouse asked me for a divorce about three months ago. The past years we were doing taxes together until 2014, now on the side I managed to save my own money (cash) in which through time people were coming to me for loans for personal use. Since I have had bad experience in the past, I lend it to people with the agreement to repay me back with 15%. I did the written agreement with their personal information and signature. I do have the amount documented, the length of the loan, date of the time it was given, currency, signature, social, and as well driver license (government I.D). My spouse found the forms, photocopied them, and hid them from me. Now that the divorce process is about to take place, he is asking for 50% or else he will use that against me in court to ensure I go to jail. The reason he wants to do this is with the intention of making sure I do not file for spousal support since we been married for 27 years. Can I tell the judge that money was given to me through inheritance from a relative from a foreign country? In which I am able to obtain proof of that money, Is he entitle to that money? According to an attorney is that it is not considered illegal since it was the conditions that people accepted as a personal favor.

  2. #2
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    Default Re: Division of the Proceeds of Loans Made During the Marriage

    You are free to file for spousal support.

    If you have a plausible argument that the loans were made from separate property, you are free to argue that as part of your effort to keep them out of the marital estate. You may have to deal with issues of commingling as well as the effect of your managing the money during your marriage.

    You say that you are working with a lawyer on this issue. You should continue to work with your lawyer.

  3. #3
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    Default Re: Division of the Proceeds of Loans Made During the Marriage

    Quote Quoting Mr. Knowitall
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    You are free to file for spousal support.

    If you have a plausible argument that the loans were made from separate property, you are free to argue that as part of your effort to keep them out of the marital estate. You may have to deal with issues of commingling as well as the effect of your managing the money during your marriage.

    You say that you are working with a lawyer on this issue. You should continue to work with your lawyer.
    He is telling me that he cannot touch that money since it was from an inheritance and same as for the courts. The thing that some say from the research I came from is that it is illegal to let people borrow money with interest rates at 15%. Just want to ensure it is not contradicting.

  4. #4
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    Default Re: Division of the Proceeds of Loans Made During the Marriage

    You haven't told us where you lent the money. If you have committed usury, you should discuss the possible consequences of your actions with your lawyer.

  5. #5
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    Default Re: Division of the Proceeds of Loans Made During the Marriage

    Quote Quoting Mr. Knowitall
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    You haven't told us where you lent the money. If you have committed usury, you should discuss the possible consequences of your actions with your lawyer.
    It was in the State of California, the agreement form only have the total amount borrowed, it does not mentions anything regarding about interest rate at all.

  6. #6
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    Default Re: Division of the Proceeds of Loans Made During the Marriage

    To be honest we do not have faith in the attorney that she hired since he had three convictions in the past 1. driving intoxicated with the blood level greater than .08% 2. punching someone in the face in the post office after been asked to move his car 3. Driving without a valid license.

  7. #7
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    Oct 2014
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    Default Personal Loans

    My question involves personal finance in the State of: California


    At the moment my parents are going through a divorce in which my mother hired an attorney (I have my doubts and see potential red flags on him) in which suppose able he handles divorce cases too. I need advise on what are the outcomes for the following situation. My mother got some money inherit by a family member in which she decided to make personal loans to friends with the repayment of 15%, in the agreement it only states the amount borrow, time frame, date of the transaction made, and that is about it. The interest rate was only a verbal agreement without been mentioned in the contract. My father got hold of some contracts in which he plans to use it against my mother when the divorce court comes in order for him to obtain half of her shares. Also another statement that was given to her was that if she doesn't give him half of it he will ensure to report that she is letting people borrow money with interest rates in order for her to go to jail. Can the court legally force her to give half of the shares to my dad?

  8. #8
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    Oct 2014
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    Default Re: Personal Loans

    The money your mother inherited generally is not community property; thus the loans she made with those funds are likely not community property either. In that case, her husband would not have a claim to any portion of those notes. But it’s critical to look at the exact details of their situation and what she did in order to make a firm determination of whether he has any community property interest in these loans.

    She might have made loans that violate California’s usury law. The maximum rate of interest in California for certain types of loans is 10%. If she violated the usury law, that would be a problem for her. Of course, since the interest was not stated in the written contract, there is also the possibility that the borrowers would take the position they don’t owe her any interest at all.

  9. #9
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    Default Re: Division of the Proceeds of Loans Made During the Marriage

    Quote Quoting goneflying87
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    It was in the State of California, the agreement form only have the total amount borrowed, it does not mentions anything regarding about interest rate at all.
    If by its terms the loan is repayable without interest, then the borrower is free to repay the loan without paying interest. Depending on the full facts the lender may be able to claim some amount of interest, but a contract that doesn't even indicate an interest rate is not going to be held usurious.
    Quote Quoting goneflying87
    To be honest we do not have faith in the attorney that she hired since he had three convictions in the past....
    If you don't trust your lawyer, hire a different lawyer.

    Added: I see that you have multiple threads on the issue, now merged.

    First it was,
    Quote Quoting goneflying87
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    My spouse asked me for a divorce about three months ago... I managed to save my own money (cash) in which through time people were coming to me for loans for personal use.... Can I tell the judge that money was given to me through inheritance from a relative from a foreign country?
    Now it's,
    Quote Quoting goneflying87
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    At the moment my parents are going through a divorce in which my mother hired an attorney.... My mother got some money inherit by a family member in which she decided to make personal loans to friends with the repayment of 15%
    Lying about who you are in this scenario serves only to muddy the waters.

    But nobody here is going to tell you (or your mother) to commit perjury by pretending that you inherited money that is in fact part of the marital estate.

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