Husband borrowed money from parents

[qweenb]

What is the name of your state? Arizona

My husband borrowed money from his parents after our divorce proceedings began. He claims his parents took out a 2nd mortgage on their home for him. He says he used it to pay off land we own. ($49,000.00) Now we are selling the land and splitting the proceeds. However he says he has to take $49,000.00 from the proceeds and pay back his parents. Am I liable to pay that back when I had no knowledge he borrowed it??

[seniorjudge]

Originally Posted by qweenb

What is the name of your state? Arizona

My husband borrowed money from his parents after our divorce proceedings began. He claims his parents took out a 2nd mortgage on their home for him. He says he used it to pay off land we own. ($49,000.00) Now we are selling the land and splitting the proceeds. However he says he has to take $49,000.00 from the proceeds and pay back his parents. Am I liable to pay that back when I had no knowledge he borrowed it??

[url]http://forum.freeadvice.com/showthread.php?t=344021[/url]

Keep all your marital woes questions in your first thread.

[nextwife]

Originally Posted by qweenb

What is the name of your state? Arizona

My husband borrowed money from his parents after our divorce proceedings began. He claims his parents took out a 2nd mortgage on their home for him. He says he used it to pay off land we own. ($49,000.00) Now we are selling the land and splitting the proceeds. However he says he has to take $49,000.00 from the proceeds and pay back his parents. Am I liable to pay that back when I had no knowledge he borrowed it??

Umm, please explain to me HOW paying back his parents the $49,000 instead of paying off the current mortgage of $49,000 in any way CHANGES what your closing proceeds would have been had he NOT borrowed the money and paid off the loan? I'm not understanding how the sales proceeds are changed by who gets paid off.

Kindly explain how your new proceeds are now different than they would have been without the loan to pay off the mortgage? If his parents are not charging interest, you will actually be netting MORE at closing than if this loan had not occurred, as I'm sure the prior loan was an amortized loan with interest.

[qweenb]

I neglected to say there is no proof that the money actually came from his parents. I suspect he has money from other sources, side business, etc. that he doesn't want me to know about. I think he should actually prove that the money is in fact borrowed. If it is from a secret account he's been stashing away I would be entitled to 1/2 of that money correct?

[nextwife]

Originally Posted by qweenb

I neglected to say there is no proof that the money actually came from his parents. I suspect he has money from other sources, side business, etc. that he doesn't want me to know about. I think he should actually prove that the money is in fact borrowed. If it is from a secret account he's been stashing away I would be entitled to 1/2 of that money correct?

One would think that his parents could easilly prove they provided the funds if they were the source.

I have no idea if he had his own. premarital assets, going into the marriage. Many of us do, and seperate accounts are NOT necessarilly marital funds, it depends upon their source. MY premarital accounts, for example, would NOT be half hubby's if we divorced.

So your issue is actually that he had access to $42,000 and you think half of those funds might be yours? If he HAD stashed the money away, and you were previously unaware of it, WHY would he have brought that money to your attention by using it to pay off the lot loan at all? That would have been incredibly stupid. Odds are, his folks DID float the loan to him and can prove it. Ask your divorce attorney

[LdiJ]

Originally Posted by qweenb

I neglected to say there is no proof that the money actually came from his parents. I suspect he has money from other sources, side business, etc. that he doesn't want me to know about. I think he should actually prove that the money is in fact borrowed. If it is from a secret account he's been stashing away I would be entitled to 1/2 of that money correct?

Yes, you would....and you could certainly fight to make him provide documentation that the loan from his parents is real. It is more than a bit odd that his parents would take out a second mortgage and loan him money to pay off a land loan, right before the property was to be sold.....unless the property was about to be foreclosed upon for lack of payment...and even then it wouldn't normally require them to pay off the entire loan.

However, you also have to be realistic. 49k is a significant amount of money and unless you were foolish enough to be completely in the dark about your family finances you should have a clue whether or not it was possible for him to amass that kind of money during your marriage, without your knowledge.

By all means force him to provide proof if you feel that he could be playing games....but you honestly need an attorney to do that. Its not a DYI project.

[nextwife]

Most HELOC loans come with checks. If they wrote a check from a HELOC they can access a copy. If it was paid direct from a cash out Jr Mtg, the HUD will show a disbursement. A copy of the check that was sent for payoff might also show it's source.

[ConcerndStepmom]

Confused about the question you asked and how other posters have answered..

For example:

#1 Are you asking that say the land sells for $100,000.00 would the $49,000.00 that he borrowed from his parents come off the top and the remainder $51,000.00 be split between the two of you..

or

#2 The land sells for $100,000 it gets split $50,000 to each and he takes his portion to pay back his parents ($49,000) leaving him with a $1,000.00 and you get your $50,000.00 to do as you please..

Is the land PAID for now?

Either way if it is the money came from somewhere.. and as others have posted his parents I am sure can prove if they loaned him the money to pay it off and there for it is only right to pay them back. Then split the remainder..