Q: Can a spouse sign a finance contract for the other
A:
To begin, Wisconsin is a Marital Property state under chapter 766 of the Wisconsin Code. Hence, spouses are given equal right to property acquired during marriage (that is neither acquired by gift nor inheritance).
Further, a bona fide purchaser/creditor is protected under 766.57. Here, a bona fide purchaser/creditor will not be punished for dealing in good faith with only one spouse. Hence, a strong majority of the time, the marital community (both spouses) will be held liable for property acquired by only one of the spouses.
However, the complexity and cost of finance contracts adds a wrinkle in some states. In those states, the other spouse is given a short period of time to cancel the transaction. In Wisconsin, the Wisconsin Department of Financial Institutions allows three days for cancellation.
Even so, if the property is acquired with separate property funds (i.e. from the other spouses bank account), the transaction might not bind both spouses. This is especially true when the one spouse acquires the property in his or her name only.
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