Whittier, CA asked in Banking and Consumer Law for Colorado

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.

Related Topics:
1 Lawyer Answer
Tristan Kenyon Schultz
Tristan Kenyon Schultz
  • Business Law Lawyer
  • Fort Collins, CO
  • Licensed in Colorado

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).

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.