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NSW Guarantor to Husband's Loan - Consequences if We Separated?

Discussion in 'Wills and Estate Planning Law Forum' started by ada, 1 September 2016.

  1. ada

    ada Member

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    My husband set up a unit trust for buying a property. His family trust is allocated units in the unit trust. I have been added as a Guarantor on his loan but not a beneficiary on his family trust.

    Can you let me know how this will impact me in an unforeseeable event such as a marriage breakdown? He is unable to pay his debt and death.
     
  2. Tim W

    Tim W Lawyer
    LawTap Verified Lawyer

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    Separation and/or divorce will have no effect on the loan contract or on your obligations as guarantor.
    You can't divorce a loan contract.
    You can, as part of a property settlement in a divorce, negotiate to exit the guarantorship,

    And that non-specific feeling in the bottom of your gut
    that something odd is going on here?
    You are not being paranoid.
    Take yourself to a lawyer of your own, and get formal advice about your situation.
     
    Stop hovering to collapse... Click to collapse... Hover to expand... Click to expand...
    Kim Walters likes this.
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