West Valley City, UT asked in Bankruptcy and Estate Planning for Utah

Q: Is prior "Small Business Administration" debt inherited after marriage?

My partner has a SBA loan from 2019. Will it become my debt after we get married?

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3 Lawyer Answers
W. J. Winterstein Jr.
W. J. Winterstein Jr.
PREMIUM
Answered
  • Bankruptcy Lawyer
  • Boyertown, PA

A: On those simple facts, no. You marry the partner, not his/her premarital debts. You would only become liable for the debt if you consented, e.g., by assuming the obligation with a writing signed by you for some new consideration.

But, if, for instance, you somehow participated in your partner's diversion of loan proceeds, or received the proceeds or assets purchased with those loan proceeds, the SBA might look to you for repayment.

David Luther Woodward
David Luther Woodward
Answered
  • Bankruptcy Lawyer
  • Pensacola, FL

A: Not unless you endorse it.

Your prior-to-marriage obligations are not changed by the marriage, but subsequent acquisitions may be. Utah is not a community property state, so joint property will have to be acquired as joint property--the title or deed should show both names. Under normal circumstances, individual purchases belong to the person who paid for it

Good Luck

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Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: No. It will not become your debt.

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