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  • FIRST POST
    • Panne
    • By Panne 12th May 19, 6:35 PM
    • 1Posts
    • 0Thanks
    Panne
    Business Loan secured against martial property
    • #1
    • 12th May 19, 6:35 PM
    Business Loan secured against martial property 12th May 19 at 6:35 PM
    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.
Page 1
    • DCFC79
    • By DCFC79 12th May 19, 6:43 PM
    • 35,083 Posts
    • 22,170 Thanks
    DCFC79
    • #2
    • 12th May 19, 6:43 PM
    • #2
    • 12th May 19, 6:43 PM
    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.
    Originally posted by Panne
    That's how secured loans work, dont tell me you just signed the paperwork without reading what you were signing up for.
    Last edited by DCFC79; 13-05-2019 at 8:23 AM.
  • archived user
    • #3
    • 12th May 19, 10:10 PM
    • #3
    • 12th May 19, 10:10 PM
    I feel this is unfair as I will get no benefit in the future from his business loan
    .
    Originally posted by Panne
    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.
    • antrobus
    • By antrobus 12th May 19, 11:32 PM
    • 16,896 Posts
    • 23,884 Thanks
    antrobus
    • #4
    • 12th May 19, 11:32 PM
    • #4
    • 12th May 19, 11:32 PM
    ....I feel this is unfair as I will get no benefit in the future from his business loan ....
    Originally posted by Panne


    That's an argument you can make in your divorce proceedings.
    • phillw
    • By phillw 13th May 19, 8:11 AM
    • 2,965 Posts
    • 2,436 Thanks
    phillw
    • #5
    • 13th May 19, 8:11 AM
    • #5
    • 13th May 19, 8:11 AM
    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.
    • Gaz83
    • By Gaz83 13th May 19, 8:13 AM
    • 3,808 Posts
    • 7,075 Thanks
    Gaz83
    • #6
    • 13th May 19, 8:13 AM
    • #6
    • 13th May 19, 8:13 AM
    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-stoat
    • By foxy-stoat 13th May 19, 9:54 AM
    • 5,114 Posts
    • 3,067 Thanks
    foxy-stoat
    • #7
    • 13th May 19, 9:54 AM
    • #7
    • 13th May 19, 9:54 AM
    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?
    • MEM62
    • By MEM62 13th May 19, 3:19 PM
    • 2,898 Posts
    • 2,573 Thanks
    MEM62
    • #8
    • 13th May 19, 3:19 PM
    • #8
    • 13th May 19, 3:19 PM
    I feel this is unfair as I will get no benefit in the future from his business loan
    Originally posted by Panne
    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.
    • dealer wins
    • By dealer wins 13th May 19, 10:12 PM
    • 6,449 Posts
    • 12,981 Thanks
    dealer wins
    • #9
    • 13th May 19, 10:12 PM
    • #9
    • 13th May 19, 10:12 PM
    Yet another lesson to everyone before signing a legally binding contract, blinded by love, greed, money etc etc!!!
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