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Harris
Harris, Family Law Expert
Category: Family Law
Satisfied Customers: 2734
Experience:  Family Law - Specialist in Divorce, Financial Relief and Children Matters
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My husband and I have recently separated. He owns his

Customer Question

hello , my husband and I have recently separated. He owns his own business which my family helped him buy. He still owes my Aunt £10,000 which he says he cant afford to give her back until I sign myself out of the business completely. He says he will then be able to finance another loan to pay her back. He has also said that he could sell his shares and then buy them back in a few years time after we divorce ??
Submitted: 1 year ago.
Category: Family Law
Expert:  Harris replied 1 year ago.
Hi, thanks for your question. I am a qualified family law solicitor.
Please can you confirm:
1. What other assets are there?
2. Do you have any children and their ages?
3. Have there been any contracts regarding the family loans?
4. Has there been any repayment at all regarding the family loans?
Harris and other Family Law Specialists are ready to help you
Customer: replied 1 year ago.
We have a house which I live in with my little girl which we both know is negative equity. We have 2 children one aged 18 who shares a house with his dad and a 10 year old daughter who lives with me. Unfortunately there were not contracts taken out which, we know now was extremely stupid on our part. There has been no attempt to pay any of the money back.
Expert:  Harris replied 1 year ago.
Thanks for confirming.
Family loans where there are no contracts and no repayments are considered "soft loans". It may be the case that your husband will claim that the loan is a gift due to informal way it has been provided and lack of repayments. It will therefore be down to your aunt to demonstrate that it was in fact a loan (eg. if there have been letters/emails confirming the terms of the loan), then this will help her case.
The Court will have to decide how to call-in the loan, if it agrees that it is in fact a loan. This could be by way of a sale of the business (although unlikely if this is his only source of income), or as your husband has suggested through re-financing options.
In the circumstances I would suggest that you enter into mediation with your husband to work out an agreement for how all the finances and assets should be shared between you when the divorce is finalised. You can find local mediators here: http://www.familymediationcouncil.org.uk/
Customer: replied 1 year ago.
To be honest I don't want anything to do with the business just want my aunts money back as she wants to retire. If I sign something to say I don't want anything to do with it will that enable him to access more funds.
Expert:  Harris replied 1 year ago.
That will be difficult to say as you will need to know the exact circumstances of the business, the value of the business and the reasons why he cannot obtain a loan.
Customer: replied 1 year ago.
He says he cannot obtain loan due to us being separated
Expert:  Harris replied 1 year ago.
I don't see how that could be true and he may not be providing you full and frank information. He could look at taking out a sole loan and you would need him to provide evidence of his borrowing capacity.
Customer: replied 1 year ago.
Ok thank you very much for your help. I have a feeling he is trying to move me away from the business due to his new girlfriend. Will look at mediation as suggested. The whole reason my Aunt lent him the money was she believed it would be a nice nest egg for our children.
Expert:  Harris replied 1 year ago.
Thank you, ***** ***** luck. Please do come back if you have further questions in the future - you can ask me directly here: http://www.justanswer.co.uk/law/expert-london-solicitor/

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