How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Harris Your Own Question
Harris
Harris, Law Specialist
Category: Law
Satisfied Customers: 2810
Experience:  Family Law - Specialist in Divorce, Financial Relief and Children Matters
90234221
Type Your Law Question Here...
Harris is online now

I am currently seperated from my wife. we are trying to

Resolved Question:

hi
I am currently seperated from my wife. we are trying to seperate the financial situation and have hit a stumbling block.
brief history. pre 2010 we had a successful business (ltd company my wife being a shareholder and company Secretary) 2 investment properties and a 33% share in a holiday home plus of course our family home. My wife was a stay at home mum and had no involvement in the day to day running of either the business, properties, or family finances.
In 2010 the bank withdrew the business overdraught and demanded repayment and until repayment was made demanded total repayments of £3500 per month an increase of some £2700 per month this in turn created a considerable cash flow issue. in order to combat this my family have lent (not gifted) these debts are unsecured and there are no written contracts there on these debts along the way, sadly in April 2015 the company ceased to trade. the stumbling block of course is that my ex is saying she is entitled to half the assets less secured borrowings I do not disagree. she is saying that because my family lent the money to me and that she was not party to the decision then it is my debt and not hers. the money borrowed was used to maintain the business, properties and family life and neither of us have had any individual benefit from it. My question is are these unsecured debts matrimonial and therefore joint debts.
regards
Peter
Submitted: 1 year ago.
Category: Law
Expert:  Harris replied 1 year ago.

Hi, thank you for your question. Loans from friends ans family are always vulnerable in these situations and it is for you to prove that they truly are loans and not gifts. Despite them not being secured loans, if they truly are loans and the business was used for matrimonial purposes - ie. Profits were used to meet family outgoings then it would be reasonable for a court to agree that the loans (if it ia proven they are loans) should be a matrimonial debt. If the matter proceeds to court your family members can be directed to provide statements and attend court to give evidence about this and it will be for a judge to decide on the balance of probabilities whether they are loans or gifts.

I hope this assists you. If you found this information helpful please provide a positive rating using the stars at the top of this page. I will not be credited for your question without a positive rating. Thank you.

Harris and 2 other Law Specialists are ready to help you