A Divorce Attorney in College Station Explains the Impact of Family Loans during Divorce
Every penny counts when it comes to the division of marital property. Each spouse must be fully forthcoming regarding income, property and assets subject to division, including income derived from family members as a personal loan. However, money given from family as a gift is treated differently than that expected to be repaid.
The Difference between Debts and Gifts Texas is a community property state, meaning all property derived during the marriage, designated as marital property, is subject to division. Many people believe this to be a 50/50 split; however, the court will take into consideration certain factors of the marriage, including duration, earning potential for both parties and spousal or child support obligations.
When property is divided, the court must take careful consideration not to include property that is not considered marital property under the rules. This includes inheritances, gifts, recoveries to personal injury claims and any property acquired prior to the marriage. If one spouse receives a sum of money from his relatives, this money must be either categorized as a debt or a gift. Debts are considered part of the marital property and must be divided as such whereas, as explained above, gifts are separate property.
You and your spouse are free to private agree as to how the repay a debt to a family member. If an agreement is not possible, the repayment will be worked into the property division decree along with all other property and debts of the marriage.
Contact a Divorce Attorney in College Station today If you have questions about a certain debt or asset during a divorce settlement, Peterson Law Group can help. For more information, call 979-703-7014 today.
There are no comments for this post. Be the first and Add your Comment below.
Leave a Comment