Forgiveable Loan

The amount of money you paid towards this in taxes may be something you need to account for to the marital estate.

If you contend the asset is your separate asset, then the debt associated with it would be your separate debt.

Helena M. Nevicosi
Attorney with Rosen Law Firm

4101 Lake Boone Trail, Suite 500
Raleigh, North Carolina 27607
919.787.6668 main phone
919.787.6361 main fax

Charlotte Office
301 McCullough Drive
Suite 510
Charlotte, NC 28262
Main Phone: (704)307.4600
Main Fax: (704) 9343.0044

Durham & Chapel Hill Office
1829 East Franklin Street
Building 600
Chapel Hill, NC 27514
(919) 321.0780

The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service only, a full discussion with an attorney should be undertaken before taking any action. The information posted on this forum is available for public viewing and is not intended to create an attorney client relationship with any individual. These answers are provided for informational purposes only, a person should consult with their own individual legal counsel before taking any action that could affect their legal rights or obligations.

I received a large signing bonus in 2000 prior to my marriage later that year. I put a portion of the bonus in stock which I never sold. The rest of the money became marital property. The signing bonus was considered a forgiveable loan, and each month $16,000 in phantom income is reflected on my check and taxes are taken out of my check based on the phantom income. If I leave my company, I will have to pay the balance on the remaining portion of the forgiveable loan.

Is the amount I invested in stock still considered separate property?

The remaining amount was invested in stock which was then sold or put in our joint bank account - and later spent. Is that considered marital property?

Is my forgiveable loan considered separate property (debt)?