While everyone wants to help a loved one in need, lending money to family members runs the risk of negatively reshaping the dynamic in those relationships. Valerie Rind learned that the hard way when her ex-husband borrowed $10,000 for his new business. She shared her story on HuffPost Live.
Rind and her husband kept separate finances, so she knew very little about his business strategy. "One day he asked me for a $10,000 loan to ease a cash flow crunch. I said 'Sure, of course sweetheart.' I didn't ask him how he got into that position," she explained to host Nancy Redd.
"One loan led to another, led to another, and eventually, pretty much my whole life savings was gone and not repaid."
While Rind did ask her husband to write an IOU, she never collected. The couple got a divorce, partially due to the unpaid loans. "It definitely started the downfall, with the not paying the money back."
She added, "I found out later that it wasn't just a cash flow crunch. There had been bigger problems that had been going on for a long time that I didn't know about. And my fault for not asking."