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Business Loan secured against martial property

edited 30 November -1 at 1:00AM in Loans
8 replies 1.1K views
PannePanne Forumite
1 posts
edited 30 November -1 at 1:00AM in Loans
Hi looking for advice. Based in Scotland, separated from m y husband. We own a property jointly. He took a business loan out 2 years ago which is secured against the property. When we go to sell he said the buiness loan needs to be paid before I get my share of the equity?

I feel this is unfair as I will get no benefit in the future from his business loan

Thanks in advance.

Replies

  • edited 13 May 2019 at 9:23AM
    DCFC79DCFC79 Forumite
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    edited 13 May 2019 at 9:23AM
    Panne wrote: »
    Hi looking for advice. Based in Scotland, separated from m y husband. We own a property jointly. He took a business loan out 2 years ago which is secured against the property. When we go to sell he said the buiness loan needs to be paid before I get my share of the equity?

    I feel this is unfair as I will get no benefit in the future from his business loan

    Thanks in advance.

    That's how secured loans work, dont tell me you just signed the paperwork without reading what you were signing up for.
  • SystemSystem
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    Panne wrote: »
    I feel this is unfair as I will get no benefit in the future from his business loan
    .

    However you did get benefit from it from when it was taken out until when you split. Depending on who was the main breadwinner and mortgage payment contributor it may be that even taking into account the business loan he's getting the bum end of the deal.
  • antrobusantrobus Forumite
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    Panne wrote: »
    ....I feel this is unfair as I will get no benefit in the future from his business loan ....



    That's an argument you can make in your divorce proceedings.
  • phillwphillw Forumite
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    For me it would depend on how long you've been married, how big the business loan is, how much equity in the house and how much you had contributed.
  • Gaz83Gaz83 Forumite
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    That's how loans secured on property work. Those who hold a charge on the property are entitled to have their money repaid when the property is sold, if it hasn't been paid off before.

    As joint owner of the property, you would have had to agree to this.
    "Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."
  • foxy-stoatfoxy-stoat Forumite
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    You knew the risks when you signed on the dotted line - you need to have a conversation with your solicitor about it.

    Have you had any benefit at all with the profits of the business after you loaned them the money?
  • MEM62MEM62 Forumite
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    Panne wrote: »
    I feel this is unfair as I will get no benefit in the future from his business loan

    As advised, you should speak to your solicitor about having this taken into account in your divorce settlement. Unfortunately, fair isn't always part of the picture.
  • Yet another lesson to everyone before signing a legally binding contract, blinded by love, greed, money etc etc!!!
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