Legal Question in Credit and Debt Law in Maryland
Our son is a married father of an 11 month old and has recently become a non-traditional full time student. He wants us to co-sign a private student loan for $30,000.00 which we believe will be the first of two.
Their agreement has been for our son to make a living while she is in charge of the finances. She has given us reason to believe that she will not make the student loan payments. She has a college degree and refuses to work. She is already talking about buying a bigger diamond ring when he graduates and starts working.
We want her name on the loans so her credit will be ruined also if she decides not to pay and she refuses. We told our son that we will not co-sign the loans with him unless we have in writing from her that she will make the payments on time and if she decides she wants a divorce from him she must renounce alimony payments which would be pretty decent if he is successful within his chosen career. (We believe that she only married him because she thought we had money.)
Is there a form that we can insist she sign promising she will make all of the payments on the loans until paid in full? Is there a form that she can sign stating that if the marriage falls apart before the loans are paid in full she renounces alimony?
Thank you.
2 Answers from Attorneys
Yes, the form regarding repayment of the note is a Contract. You agree to co-sign, she agrees to pay all the monthly amounts. You could also have her sign a Note, which says that if she defaults on any payments, the note (in the full amount of the loan), will automatically come due. There's plenty of vehicles that a Maryland lawyer can draw up for you that will protect you.
Regarding alimony -- since they are already married, they can each voluntarily sign a "post-nuptial" agreement, which will be her agree not to seek or collect alimony.
Truthfully, if I were this young lady, I would be INCREDIBLY insulted to have these types of documents put in front of me. I would prepare for some push-back from her.
Best of luck. The above is for informational purposes and does not create an attorney-client privilege.*******
Upon reviewing your limited facts provided, I would counsel against co-signing any loans. While you could have your son and daughter in law sign a promissory note with a confession of judgment clause, this will not prevent the creditor from suing and enforcing the loan against the co signers. The promissory note will only allow you to attempt to collect the money back from them but you will be responsible and your credit will take a hit. As for a post nuptial/marital agreement, an agreement can be drafted for the daughter in law to waive any entitlement to alimony if she separates and divorces your son, but this will not prevent you from being personally responsible for the default on the loans. Please feel free to contact me if you have any questions about this.
The above is for informational purposes only and does not create an attorney-client relationship. I will require more information from you to provide a more detailed answer.
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