Page 1 of 2 1 2 LastLast
Results 1 to 10 of 13
  1. #1
    Join Date
    Aug 2015
    Location
    California
    Posts
    2

    Question How is a Personal Loan Divided in Divorce

    My question involves a marriage in the state of: CA

    My wife and I are living in CA and my question is about dividing a personal loan I took a few years back.
    About one year before we married my wife talked me into investing into something that is now worthless.

    At that time we were living together for about two years and I was providing the only income.
    To finance it I took a personal loan that is only in my name.

    Now the questions: We have to list all assets and liabilities now and I was wondering if this loan goes into this list as well.

    Thank you in advance!

  2. #2
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: How is a Personal Loan Divided

    The loan appears to be your sole and separate debt regardless of the reason for borrowing the money.

    You probably don't have to show it on the list of joint debts as there will be something in your decree about each party keeping their sole and separate assets and liabilities.

    Sorry, but I'm afraid you get stuck with that debt regardless of any other considerations.

    You would be wise to discuss this with an attorney.

  3. #3
    Join Date
    Jun 2015
    Posts
    988

    Default Re: How is a Personal Loan Divided

    Does she have any ownership interest in the near worthless asset ?

    Me, Id put in the debt as community and let others address is its properly out ?

  4. #4
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: How is a Personal Loan Divided

    Quote Quoting HRinDEVON
    View Post
    Does she have any ownership interest in the near worthless asset ?

    Me, Id put in the debt as community and let others address is its properly out ?
    Its clearly a premarital debt, therefore separate debt. So you are advising him to attempt to defraud his stbx?

  5. #5
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: How is a Personal Loan Divided

    Quote Quoting llworking
    View Post
    So you are advising him to attempt to defraud his stbx?
    No surprise there.

  6. #6
    Join Date
    Jun 2015
    Posts
    988

    Default Re: How is a Personal Loan Divided

    Sorry but my understanding , perhaps wrong, was that if the "something" became marital property that the previous separate debt might also become marital debt

  7. #7
    Join Date
    Aug 2015
    Location
    California
    Posts
    77

    Default Re: How is a Personal Loan Divided

    It might help if you told us what that "something" is. However my guess would be that if you took the loan out for the "something" prior to marriage, both the loan and the item would be yours. Unless ... we're talking about a boob job in which those will obviously stay hers and you get stuck with the debt.

  8. #8
    Join Date
    Aug 2015
    Posts
    6

    Default Re: How is a Personal Loan Divided in Divorce

    The answer to your question is yes it goes in the list. The form has a column for identifying whether you consider it separate or community property but everything gets disclosed.

    Now, was the asset held in joint name? Or was it yours alone, like the debt? Did you treat it as community property during the marriage or was it worthless prior to the marriage? Did you recognize the asset loss on your taxes? These are all questions to review with your attorney regarding the proper classification and whether or not their may be a reasonable basis for any reimbursement from the community.

    But, yes, it goes on the list.

  9. #9
    Join Date
    Aug 2015
    Location
    California
    Posts
    2

    Default Re: How is a Personal Loan Divided in Divorce

    Thank you for your answers, I am trying to answer your questions:

    The 'something' were single family homes (outside CA) I bought to generate passive income. Most of them went into tax-foreclose and some still generate small income thru rental. The homes and debt are held in my name. The loss is still written off in the tax filing. The whole investment went sour even before the marriage.

  10. #10
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: How is a Personal Loan Divided in Divorce

    Quote Quoting Family4Guy
    View Post
    Thank you for your answers, I am trying to answer your questions:

    The 'something' were single family homes (outside CA) I bought to generate passive income. Most of them went into tax-foreclose and some still generate small income thru rental. The homes and debt are held in my name. The loss is still written off in the tax filing. The whole investment went sour even before the marriage.
    Then its your separate debt and your separate assets.

    1. Sponsored Links
       

Page 1 of 2 1 2 LastLast

Similar Threads

  1. Division of Assets: Is Settlement Money from an Injury Prior to Marriage Divided in a Divorce
    By Ochsy03 in forum Divorce, Annulment and Separation
    Replies: 3
    Last Post: 12-02-2014, 05:33 AM
  2. Division of Assets: How is Debt Divided in a Divorce
    By readytoleave in forum Divorce, Annulment and Separation
    Replies: 1
    Last Post: 05-03-2014, 09:06 AM
  3. Division of Assets: How Are Assets and Debts Divided in a Divorce
    By jshaffer90 in forum Divorce, Annulment and Separation
    Replies: 1
    Last Post: 03-06-2014, 11:30 AM
  4. Division of Assets: How are Assets Divided in a California Divorce
    By rfsandiego in forum Divorce, Annulment and Separation
    Replies: 1
    Last Post: 12-02-2013, 07:39 PM
  5. Loan Agreements: Can I Sue Cosigner for Amount of Personal Loan Tacked Onto Auto Loan
    By ktvd in forum Cars and Dealerships
    Replies: 3
    Last Post: 07-01-2009, 02:57 PM
 
 
Sponsored Links

Legal Help, Information and Resources