(Newsweek) - When one thinks of marital disputes, issues like communication, intimacy, or day-to-day squabbles might come to mind. However, for one woman, her husband's impulsive financial decisions may be the last straw in their relationship.
The woman and her husband, both successful professionals, had their financial situation sorted—until familial obligations kicked in. The husband's mother and sister, whom the wife alleges have a history of financial recklessness and entitlement, found themselves in a predicament. They were being evicted from their current home and desired to purchase property in one of America's priciest markets.
Despite having no concrete repayment plan, they requested the husband co-sign on a million-dollar house. The wife, apprehensive about the idea, thought her concerns were heard when her husband assured her he wouldn't go ahead with the deal. Yet, she later discovered he did the exact opposite.
Newsweek did not immediately get a response from the wife or husband in this situation.
The Gravity of Co-Signing
Detroit realtor Dominique Morgan spoke to Newsweek on the gravity of co-signing, saying, "The co-signer is left with the debt if the applicant defaults on payments." She adds that family complications and credit issues can arise. While co-signing among family members isn't uncommon, Morgan said there is a need for contracts to safeguard both parties.
But what about the legality of one spouse making such a huge financial decision without the other's consent?
Susan Guthrie, a Chicago-based divorce attorney and podcast host, offered Newsweek some clarity. "The husband has exposed any jointly held or solely held assets to cover his family debt," Gurthie explains. She goes on to describe that in the event of a divorce, the co-signed loan could be considered joint debt, even though the wife objected.
Gurthie's advice to the wife is immediate: "Consult with an attorney." She adds, "This breach of trust is the sort of thing that leads people to divorce and may be hard for the couple to overcome."
Broader Implications
Such personal stories expose the mess that can develop between finance, trust, and marital relationships. The fact that the wife found out about the significant decision post-facto, and during an already emotionally charged time—they are in the midst of IVF treatments—adds layers of complexity.
While many empathize with the wife's feelings of betrayal, others on the Reddit post argue that the husband might've acted out of obligation and genuine concern for his family. What's undeniable is that financial transparency and mutual decision-making are foundational in marriages.
While money can be earned back, lost trust may be irretrievable.
By Alexander Fabino | Reporter, Economy & Finance
October 24, 2023
