After the failure of the tanghulu business and divorce, how will asset division be handled?

What will happen to the asset division in a divorce case with a husband who is in deep debt after venturing into the once-popular tanghulu business? This topic was addressed on the YTN radio show "Consultation Center with Attorney Jo In-seop" aired on the 25th.

A housewife, referred to as A, who has been married for 15 years, originally expected a stable life with her civil servant husband. However, their circumstances changed drastically when her husband opened a tanghulu shop five years ago.

The tanghulu shop, which was popular at the time, initially thrived, but over time, sales plummeted to the point where they could no longer pay the monthly rent.

Ultimately, the business ended in failure, resulting in a debt of 230 million won, combining loans and money borrowed from acquaintances.

A expressed concern, stating, "Before my husband started his business, we sold our apartment and bought a villa in my name. I'm worried whether my villa will be safe after the divorce due to my husband's debts."

In response, attorney Lim Kyung-mi from Shinsegae Law Firm explained, "The right to claim asset division can only be exercised by the parties involved, and creditors cannot substitute for them."

She also mentioned that if the asset division is confirmed with A owning the villa, there is a possibility that her husband's creditors may file a "claim cancellation lawsuit."

Attorney Lim noted, "Since the villa was acquired solely in A's name during the marriage, it is recognized as A's property. However, if the creditors can prove through litigation that her husband provided substantial compensation, it may be recognized as joint ownership."

She added that if the husband gives up his claim to asset division during the divorce, there will be no subject for cancellation lawsuits from creditors, so it won't be a problem.

If the husband transfers all his property to A and applies for personal rehabilitation, it is possible to file for personal rehabilitation if his debts exceed his assets. However, the property transferred to A will still be considered an asset and will be factored into the calculation of the repayment amounts to the creditors.

This case highlights how crucial careful economic decision-making and mutual understanding are between spouses. Particularly when managing significant assets like real estate, extra diligence is necessary.

Image source: Reference photos for understanding the article / gettyimagesbank