How would a loan from one spouse to another be handled in CA family court?

UPDATED: Oct 2, 2022

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How would a loan from one spouse to another be handled in CA family court?

I used money from a prenuptial savings account to loan my wife 18,000 to
purchase a new vehicle. We had a verbal agreement and she agreed to pay me
back 250/mo to repay the savings account. She made two payments then
refused additional payments. We are getting a divorce in CA. The vehicle is
worth less than the loan amount due to depreciation and age. In your opinion,
how would the courts view this situation?

Asked on September 14, 2019 under Family Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

If you can prove the loan to the court's satisfaction, this should be a factor in distributing assets: e.g. you get $17,500 more im assets than her, to repay the loan. The issue will be proving a loan between spouses--spouses don't usually "loan" each money, after all; they help each other out with expenses, being spouses--when there is nothing in writing, unless you wife were to corroborate or substantiate the existence and terms of the loan.

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