Q: Is it legal in Colorado for a bank to require a divorce decree to approve a loan when divorce isn't even intended?
We are separated, have no intent to file for divorce any time soon. Loan is submitted by hsbnd to build house for wife. The loan underwriter is close friend of wife and used personal info to deny loan. All other criteria were met to qualify for the loan. The bank wants a letter from both of us stating that we don't intend to file, or that I won't be fighting for a big settlement, something to that effect. It all seems very illegal to me.
A: Divorces can significantly impact the income, expenses, and ownership of marital property. Since you are still married, both parties' property is potentially still part of the marital estate and subject to division. Overlap the differences in state law (e.g. CA is a community property state) and I can understand why the bank is nervous. A bank can legally request additional assurances, whether these assurances are reasonable or in both of the party's interests is a wholly different matter...
If you want specific guidance you will need to contact (and likely pay for) an attorney's advice directly. If you decide that you want to contact an attorney, an attorney licensed in either CA or CO should be able to answer your questions (i.e. you do not need to find a dual-licensed attorney in CA and CO).
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