I have a question on an agreement for indebtedness. Recently my brother divorced and agreed to pay Dh200,000 to his ex-wife. He then lost his job and went back to India. He is facing a financial crisis and has promised to settle soon. Now I am being threatened by his ex-wife that she will take legal action against me if he delays repayment. My question is whether I am liable for his default. Although we are blood related, I am no way involved in the money he borrowed. As per UAE law, can the defendant take legal action against a person who is not involved in a debt agreement? Also can I take legal action against her if she troubles me? AS, Dubai
The agreement that AS’s brother has with his ex-wife is a private arrangement and is not the legal responsibility of any third party, even if they are a close relation. This would only be the case if the person was a joint signatory or a guarantor on a debt or agreement. In theory, if AS is genuinely being harassed he could make a police case for it but there would have to be strong grounds for this and there is little to be gained by such action.
Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with over 20 years’ experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE.
The advice provided in our columns does not constitute legal advice and is provided for information only.
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