Results 1 to 6 of 6

Thread: CC loan account in case of a divorce ??

  1. #1
    New Member
    Join Date
    Jun 2012
    Location
    East London
    Posts
    4
    Thanks
    1
    Thanked 0 Times in 0 Posts

    Question CC loan account in case of a divorce ??

    My wife is the sole member in a cc. I gave her x amount to pay for the original amount to pay for the business. I also gave her money to renovate the place and she also drew a large amount from our joint account which I suspect partly paid for some later additions and equipment for the business.

    Would these contributions go to a loan account?

    We are married in community of property.

    Do I have a claim against the loan account if we get divorced?

    Some items from our home (pictures and mirrors etc) were taken to the premises to be used as decor. Do I have right to these things also?

  2. #2
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,980
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    How are you married - community of property, anti-nuptual contract or accrual?
    The trouble with opportunity is it normally comes dressed up as work.

  3. #3
    New Member
    Join Date
    Jun 2012
    Location
    East London
    Posts
    4
    Thanks
    1
    Thanked 0 Times in 0 Posts
    Community of property

  4. #4
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,980
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    Then there is no "yours and mine" - it's all "ours" (including her interest in the business).
    The trouble with opportunity is it normally comes dressed up as work.

  5. Thanks given for this post:

    Grunt (22-Jun-12)

  6. #5
    New Member
    Join Date
    Jun 2012
    Location
    East London
    Posts
    4
    Thanks
    1
    Thanked 0 Times in 0 Posts
    Quote Originally Posted by Dave A View Post
    Then there is no "yours and mine" - it's all "ours" (including her interest in the business).
    Ok ... that sounds simple enough.

    I thought that it being a cc and all that this might protect her. Then I thought that any loans made to the cc would fall into the 'ours' category. What you say seems to confirm this?

  7. #6
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    20,980
    Thanks
    3,055
    Thanked 2,462 Times in 2,067 Posts
    Blog Entries
    12
    Quote Originally Posted by Grunt View Post
    Then I thought that any loans made to the cc would fall into the 'ours' category. What you say seems to confirm this?
    I'm not sure you can just isolate the member's loan account when looking at this. You might need to take a more holisitic view of the value of the member's interest in the cc, the loan being but one component.

    The key to getting some sort of a picture in your mind is everything is in the pot when it comes to community of property (with some rare exceptions, generally related to inheritances). With a divorce, obviously there needs to be a settlement as to who gets what in the division of this pot, and this can involve a fair amount of horse trading.

    Obviously if emotions are flying high, this might not be easy. All I can do is urge both of you to try to step outside of those emotional forces for this part and try to be fair, otherwise it'll be the lawyers who'll be the big winners
    The trouble with opportunity is it normally comes dressed up as work.

Similar Threads

  1. [Question] Directors' Debit Loan account
    By antonnkramer in forum Tax Forum
    Replies: 4
    Last Post: 18-May-12, 09:17 PM
  2. [Question] CC Member's Loan account
    By Answers Please in forum Accounting Forum
    Replies: 3
    Last Post: 30-Mar-12, 02:30 PM
  3. [Question] Members loan account
    By vtnoracle in forum Accounting Forum
    Replies: 12
    Last Post: 27-Feb-12, 06:48 PM
  4. [Question] HOW DO WE CEDE A LOAN ACCOUNT FROM ONE MEMBER TO ANOTHER??
    By Kari in forum Business Finance Forum
    Replies: 4
    Last Post: 26-Sep-11, 02:26 PM
  5. Loan account in CC
    By Darko in forum General Business Forum
    Replies: 2
    Last Post: 06-May-09, 01:57 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •