Legal Question in Business Law in Iowa

My husband has a small business with two others. A mortgage broker called and wanted info from me because I was listed as a borrower along with one partner and my husband. The busuness is purchasing property. The other partner was not listed nor their wives. My husband says there is no difference if I am listed or not, as a wife I am still liable. I should not be concerned. This worries me. Why is the other partner not listed nor their wives? If I sign on as is, as a borrower, and not the others, do I have more liability then the spouses not on the mortgage?


Asked on 1/01/12, 4:53 pm

2 Answers from Attorneys
Robert Luedeman solo practitioner

Had you not signed on as a borrower you would have been protected from attempts to garnish your income. I learned that to my cost a few years ago. It's in the Iowa Code and the chapter is called "Husband and Wife" and it deals with the financial obligations of married people. As to why the others are not listed, maybe they didn't borrow any money.

If you have not yet signed as a borrower I would avoid it if possible because you'd have obligations without rewards.

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Answered on 1/03/12, 5:54 am
Thomas Moens Moens Law Offices, Chartered

In Iowa when mortgaging real estate, the spouse of a borrower will generally be required to sign a mortgage. However, a mortgage broker would not "want info" from you in this case. It sounds like you will be obligated to repay the loan, and it sounds like the other partners are not going to be obligated to repay the loan.

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Answered on 1/03/12, 11:38 am


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