Hard Loan

A formal, commercial loan from a bank, building society, or other arm's-length lender — with proper written terms, interest, a fixed repayment schedule, and a real expectation (and mechanism) for repayment. Hard loans are generally treated as genuine liabilities on the divorce balance sheet because they're enforceable: the lender will pursue repayment, the debt must be serviced, and non-payment has real consequences (default, charges, recovery action). The contrast is with 'soft loans' from family, which may not be real obligations. The court still needs evidence of a hard loan — the agreement and up-to-date statements showing the balance — but, unlike a soft loan, its reality as an enforceable debt is seldom in doubt. The outstanding balance reduces the borrower's net assets, and the court considers who took out the loan and what it was used for when deciding how it should be borne between the parties.