Rohan 25 November 2019

Divorce conditions

As security for a husband's loan, the wife gives a signed cheque of a large amount to the lender. If the husband and wife are to get divorced before the loan is repaid, is the wife still bound to the loan. Can a clause be added in the divorce agreement to free the wife?

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4 Replies

Adv Deepak Joshi +917017821512 (Advocate) 25 November 2019

divorce will not effect the liability of the wife incase of default. You have to clear the loan or arrange the another surety for same loan.

G.L.N. Prasad (Retired employee.) 26 November 2019

1. You can as formality issue a notice to Banker about divorce requesting them to insist for another surity and to exonerate you from the obligations of a guarantor.

2. You can insist in the compromise agreement or insist for condition through process of court for releasing you from the legal obligations of guarantor.

3. You can also make a stop payment of the cheque to the banker so that Banker will himself commence further proceedings against the borrower.