World

A NY court ruled a husband’s loan on his own home to buy a marital house must be paid from its sale

In a significant ruling, a New York appeals court has set guidelines for managing debts tied to a marital home amid divorce. The judges determined that a husband can recoup his home equity loan debt from proceeds of a jointly owned house. This arose from a loan secured against his separate property, and the court ruled that debts incurred for marital assets are communal liabilities.