If I have personally guaranteed a corporate business loan after marriage, will my wife be responsible for it although she has not signed any loan documents, etc?

She has not signed any loan documents or guarantees. She lives in a community property state while I live in a common law property state where the business is located.

Asked on September 16, 2012 under Bankruptcy Law, Illinois

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

This depends on where you were living when the agreement was signed to personally guarantee the loan.  If you were not separated, then yes, it could be an issue. If you were separated, she may be shielded.  Your best bet is to go ahead and sign an indemnification agreement (see a contracts attorney to help you).  This should shield her from personal liability.


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