Divorce is a complex process. Among the financial questions that arise, one particular issue is what happens to family loans. Who is responsible for the repayment? How are these debts treated legally? What happens if there’s no formal documentation? Here are some strategies for resolving disputes over family loans:

• Open Communication: Transparency is critical throughout the divorce process. Both parties should discuss the loans they have openly, agree on its current balance, and decide on repayment terms. 
• Consider Mediation or Arbitration: If you and your spouse can’t agree on responsibility for repayment, mediation or arbitration can offer an alternative to courtroom litigation. 
• Seek Guidance: An attorney, mediator, or financial advisor can help couples to reach a fair agreement about family loans as part of the overall divorce settlement. 
• Negotiate a Settlement: Some couples decide to factor family loans into the division of assets and debts. For example, if one spouse retains the marital home, they may take the sole responsibility of repaying the family loan, while the other spouse receives equivalent assets such as retirement accounts. 

Let me be your financial advocate as you navigate the divorce process. I can help you with your divorce settlement, asset division, and create a financial plan for your future. As a Certified Divorce Financial Analyst, CDFA® and a woman myself, I can help you avoid costly mistakes and educate you on current and future budgets, provide a financial road map, and help you understand what assets you have, what you spend, where you spend it, and more.

You don’t have to go through this alone.

Contact me today at 716-800-4290 to schedule your first appointment