Loan Agreement between Spouses

 
If spouses enter into a loan agreement in respect of an asset that is their community property during their marriage, and the borrower intends to use the loan for his/her person affairs or business purposes, rather than for family use, the loan agreement may be deemed as a property division agreement.
 
Such an agreement is valid and binding on both spouses when they intend to divide their community property or in divorce. And in such cases, the asset covered under the agreement should be divided as agreed therein, either spouse’s claim for division of such asset by other means will not be sustained unless agreed by the other spouse.