Discussion:Paid business loan as divorce settlement
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Revision as of 14:20, 14 May 2008
Discussion Forum Index --> Advanced Tax Questions --> Paid business loan as divorce settlement
Discussion Forum Index --> Tax Questions --> Paid business loan as divorce settlement
| 14 May 2008 | |
| Husband and wife getting a divorce. Husband is 100% shareholder of an S-Corp business, started 20 years ago. Wife is threatening to sue for the business interest since she has been involved in it for the last 15 years, so a monetary settlement is agreed from both sides. Husband took out business loan and a portion of it pays her directly, is her payment portion considered business expense (he said had to do that or will be out of business) or personal (in which case it's a distribution?) I would say it's the latter, anyone disagree? | |
