Spouse not recognizing Debt

What is the name of your state (only U.S. law)? NC

I borrowed money from a family member for the down payment on a home after we were married. I have a loan document stating the terms of the loan that I signed, my wife did not sign. We are divorcing and my wife now claims she did not know about the loan and is not responsible for half of it. Does it matter whether she knew about it or not?

You have a loan document with only your signature, so you are solely responsible - as far as the creditor is concerned.

However, the debt might count as marital debt. If it does, you can ask for the divorce judge to order your ex to pay half. Whether they would do so or not depends on a lot of other factors - including things like 'who is keeping the home?'.

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mistoffolees said:

You have a loan document with only your signature, so you are solely responsible - as far as the creditor is concerned.

However, the debt might count as marital debt. If it does, you can ask for the divorce judge to order your ex to pay half. Whether they would do so or not depends on a lot of other factors - including things like 'who is keeping the home?'.

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We have decided to sell the house. Will she be responsible for half of the loan? Does it matter that she claims she didn't know about it?

So, where does SHE claim the downpayment came from? She didn't provide it, right? It came from SOMEWHERE. I didn't magically appear. If you and she did not have the funds, it had to have come from somewhere.

sparks88 said:

We have decided to sell the house. Will she be responsible for half of the loan? Does it matter that she claims she didn't know about it?

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She will be entitled to 1/2 of marital equity. The loan certainly factors into that if it meets the requirements of marital debt (that is, was it taken out while you were married?).

A possible complication is that the loan company may have wanted a letter from the relative stating the "loan" was a gift in order to meet guidelines for the first.

Was there such a letter signed?