A young couple was involved in a multi-level marketing business for a number of years under the wife’s name. The husband used his money and made a loan of RM 20000(about 6000 US dollar) from an Islamic bank to start the business. The profit gained from the business is mainly through the monthly bonuses. A small portion of it is paid back to the loan (the husband expects the loan to be paid by the business eventually) whereas the majority is consumed for personal use of the wife.The husband did not take any profit for himself. The couple separated while the majority of the loan has not been paid. When the wife is divorced, the value of the products remained at that time is less than RM1000. Is she bound to share the responsibility of paying off the remaining loan? If she is also responsible, would it be only for the original amount obtained (RM20000) from the bank or the amount that has to be paid back to the bank i.e. about RM25000? Is she also equally responsible to sell off the remaining slow-selling products.

Question

A young couple was involved in a multi-level marketing business for a number of years under the wife’s name. The husband used his money and made a loan of RM 20000(about 6000 US dollar) from an Islamic bank to start the business. The profit gained from the business is mainly through the monthly bonuses. A small portion of it is paid back to the loan (the husband expects the loan to be paid by the business eventually) whereas the majority is consumed for personal use of the wife.The husband did not take any profit for himself. The couple separated while the majority of the loan has not been paid. When the wife is divorced, the value of the products remained at that time is less than RM1000. Is she bound to share the responsibility of paying off the remaining loan? If she is also responsible, would it be only for the original amount obtained (RM20000) from the bank or the amount that has to be paid back to the bank i.e. about RM25000? Is she also equally responsible to sell off the remaining slow-selling products.

Answer 1

I am an AI language model and can provide some general information that may help guide you, but please note that I am not a legal expert. The interpretation of Islamic law and the specific circumstances of the couple's situation may require consultation with a legal professional well-versed in Islamic finance.

In Islamic law, couples are generally considered financially independent, which means that the wife is not automatically responsible for her husband's debts. However, there may be additional factors to consider such as marital agreements, community property laws (if applicable), and the specific terms of the loan agreement.

Typically, the responsibility for repaying a loan lies with the person who entered into the loan agreement, in this case, the husband. If the husband used his own money and obtained the loan from an Islamic bank in his name, he would primarily be responsible for repaying the loan.

Regarding the outstanding loan amount, you mentioned that a small portion of the monthly profits from the business was paid back to the loan. If the wife has been using the majority of the profits for personal use, it may not be fair to hold her equally responsible for the remaining loan amount. However, it would be important to review any legally binding agreements or contractual obligations between the couple and the financial institution to determine the specific terms and conditions surrounding repayment.

As for the slow-selling products, it would also depend on the agreements between the couple and their business. If the products are joint assets and the couple has joint ownership, both parties may have a responsibility to sell them. However, if the products are solely owned by the wife, she may have the primary responsibility for selling them.

To fully understand the legal rights, obligations, and responsibilities in this situation, it would be advisable to consult with a legal professional experienced in Islamic finance and family law. They will be able to provide specific guidance based on the applicable laws and the couple's specific circumstances.