Loans can be a part of a married couple's life in a variety of ways, which can make things a bit of a challenge when that couple decides to divorce. If you and your spouse are heading down this road, there are many things that you'll need to talk about and to which you should come to a consensus — perhaps with some helpful input from your divorce attorneys. If loans are in the picture, there are several ways that you can go about dealing with them. Here are three different types of loans and how you might move forward with them.
Loans To Each Other
Married couples will often give each other money, but loans can also be a part of your reality. For example, if one spouse needs to buy a new vehicle but doesn't have the funds, the other spouse may loan him or her the money to make the purchase. This idea might seem unusual to some couples, but it's the norm for others. In the case of a divorce, you'll need to decide how to proceed with this loan. Will the spouse who received the money pay it back over time? Will the lender free his or her spouse from this debt?
Loans From Family Members
When someone needs a loan, they will often go to their family. For example, if you have affluent parents and you need some money for any reason, you might ask them for a loan. However, there can also be scenarios in which you ask one of your spouse's family members for a loan — for example, you get a loan from your spouse's parents. Your relationship with them might largely end with the divorce, but the repayment of your debt shouldn't. It's always appropriate to continue to pay back this loan, even after a divorce.
Loans You Took Out Together
In some cases, you and your spouse may have applied for a loan together. This is something different than your mortgage, which is easy to rectify by selling the house and splitting the proceeds. If you have a loan together, you're linked in this manner until you pay it off. Consider how you've been making payments on the loan and evaluate whether you'll be able to do so in the same manner after the divorce. If not, you'll need to come up with an alternative approach to paying it off as quickly as you can.
For more information, contact a law office like Moore Robert G Attorney at Law.