Legal Question in Credit and Debt Law in California

My husband and I are residents of California, and recently he applied for a business loan. They denied his application because I did not cosign the document. Am I required by California law to cosign with my husband? I know California is a community property state, so I do know that I will be liable regardless of whether or not I cosign, but I am more worried about the repercussions of such a cosign, i.e. default by sudden death. I am concerned this may negatively affect HIS chances of getting the loan because I make far less than he, and I do not think my credit is that good. Is there any sense to me cosigning, and how much of a risk do I run in the future by doing so?

Any help would be much appreciated.


Asked on 2/26/13, 6:51 pm

1 Answer from Attorneys
Edward McCutchan Sunderland | McCutchan, LLP

California is a community property state. Even if your husband received the loan you as his spouse would be obligated under it as a community debt regardless if you signed it or not. If your husband needs the loan and the only way he can get it is you sign for it as well, then you have to make the decision whether you do so or not.

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Answered on 2/27/13, 8:35 am


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