Can I be responsible for a delinquent business loan if my husband’s signature is on all the contracts and I didn’t sign?

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Can I be responsible for a delinquent business loan if my husband’s signature is on all the contracts and I didn’t sign?

My husband and I purchased an existing business and relocated it. We no longer wanted to lease a space, so we decided new construction would be better. There are 3 separate loans for the construction – 1 for the building, 1 for the land and 1 for the equipment. They’re all in an delinquent status and appearing on my credit report, along with my husband’s credit report. I did not sign not any loancontract, nor is any part of the business or loans in my name Can the entities hold me responsible? Is this legal? We do not live a community property state.

Asked on February 3, 2012 under Bankruptcy Law, Ohio

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

Under the laws of many states, an obligation of one spouse to an agreement during the marriage obligates the other spouse to the obligation as far as marital assets are concerned regardless of the fact that not all spouses signed the contract (only one did).

In the situation that your are writing about, it appears that your share of the marital assets would be obligated for the delinquent business loan that your husband signed for but you did not under your state's laws.

You could be held responsible for this loan that your husband took out with respect to your share of the marital estate.


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