Real Answers for Life’s Money Challenges
My wife lent money to a friend.
I assumed we would accept the loss if it werent repaid, but my wife had other ideas.
Incredibly, she doesnt think this will harm their friendship.
Apparently, my wife was once sued by her own mother.
She said they remained close throughout, and it was a good learning experience.
Id like to ask my wifes parents about this, although Id rather not mention how it came up.
The contract is acting like notarized, and I wonder whether the notary considered this.
I highly doubt her friend will react to being sued by happily posing for a courtroom selfie.
I cant imagine what their working relationship would look like after that.
Lets put aside the legality of this agreement for a second here.
Your wife crafted an agreement that you believe is predatory to take advantage of her friend.
Regardless of whether its legal, you dont think its right.
You have an obligation to speak up here.
Heres what he had to say:
I would worry about what the interest rate is, Meyer said.
Without knowing more about the situation, I cant say if it is predatory or not.
It is also important to note that each state defines predatory lending differently.
Based on the limited information you present, Meyer thinks this does sound like an enforceable agreement.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
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But the notary had no role in making sure this was a fair or enforceable contract.
So where does this leave you?
It doesnt sound like you know all the terms of the agreement.
So Id suggest you and your wife sit down with an attorney to review exactly whats in that contract.
Thats assuming, of course, that your wife is willing.
Shes been less than upfront with you, so this isnt a given.
Its striking all the things you havent talked about.
Meanwhile, your wife was plotting to take over her friends business.
That seems like a pretty significant event one that you would have mentioned to your spouse.
It sounds like you have a nagging suspicion that your wife isnt trustworthy.
Are you hoping your inlaws explanation will quash that suspicion?
Just because something is legal, that doesnt make it right.
Ask your wife about her intentions.
Is it to get repaid?
Is it to become a business owner?
Whatever the goal, can she achieve it without suing her friend and taking over her business?
You may not win this one.
But pay attention if your wife doesnt want to discuss details.
Sometimes the more we conceal, the more we reveal.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.
Send your tricky money questions to[email protected].
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