"I gave my husband a full loan for his business, but he spent it all on entertainment expenses"

Borrowed Maximum Loan for Business Funds
Husband Spent Loan on Personal Entertainment
Lawyer: "Even If You Give Up Property Division, Bankruptcy Cannot Be Denied"

Photo unrelated to the article. [Photo source=Pixabay]

A story has emerged about a husband who borrowed money from his wife, claiming he needed business funds, but spent it on entertainment.

YTN's 'Attorney Jo Inseop's Counseling Room' revealed the story of Mrs. A, who demanded a divorce from her husband on the 29th. Mrs. A was an accountant at a small-to-medium enterprise, and her husband was a businessman. She took out a massive 'Yeongkkeul loan' (a loan taken to the maximum limit) for her husband's business funds. However, a few months later, Mrs. A was laid off due to her company's financial difficulties and demanded repayment of the loan from her husband. It turned out that her husband was squandering Mrs. A's loan money on living expenses and entertainment.

After understanding the situation, Mrs. A filed for divorce and property division against her husband. However, unable to repay the loan, she eventually filed for bankruptcy in court. When the court-appointed bankruptcy trustee took over Mrs. A's property division claim lawsuit, Mrs. A expressed her intention to give up the property division claim.

Attorney Song Mijeong stated, "The right to claim property division upon divorce is somewhat different from other property-related rights," adding, "Until the court's ruling is finalized, it is impossible to know how much of the share is mine, so the property division claim that has not been finalized by the court is not considered an asset subject to execution by creditors (assets of the debtor that creditors can dispose of)."

She further explained, "Therefore, if Mrs. A gives up the property division claim, the bankruptcy trustee cannot exercise Mrs. A's property division claim on her behalf," and added, "It was wrong for the bankruptcy trustee to take over a property division claim whose outcome has not been decided." She also noted, "Even if Mrs. A gives up the property division, it does not constitute grounds for bankruptcy denial."

However, she said, "If the parties agree to give up the property division claim upon divorce, or if the property division claim is not exercised for two years after the divorce, the claim will disappear," adding, "In this case, the property in the husband's name will fully belong to the husband, and Mrs. A cannot assert a division claim."

Netizens who heard the story reacted with comments such as "The husband is really a bad person," "How could he do that to a wife who even took out a massive loan for him," and "I feel sorry for the wife."