- What is a community property state?
Some states grant certain property rights and obligations to people who are married (including registered domestic partnerships and other similar legal relationships in some states). In these states, a person may automatically have an interest in property acquired by the other party, even if they’re not both named on the deed or title.
- Which states are currently community property states?
The community property states in which secured loans are available are Arizona, California, Idaho, Nevada, New Mexico, Texas, Washington, and Wisconsin.
- Why does my marital status matter?
When you accept a secured loan offer, the fixtures in your home become collateral to secure your loan. If your address is in a community property state, your spouse (or another person who has community property rights under state law) may have an interest in the property, including in the fixtures.
We’ll require assurance that each of you, and any other owner of the property, are aware of the secured loan and will not interfere with our ability to collect on or enforce your loan.
- Do we both need to consent?
If you’re a resident of a community property state, and are in a covered relationship, both of you must consent to the loan. Instructions on how to provide consent electronically are provided during the application process.
- What if I’m married or in a similar legal relationship and live in a community property state, but we’re separated or have filed for divorce?
This can vary depending on the state in which you live, and we would recommend that you seek legal advice if you have a question about the legal status of your specific situation. To finalize your loan application, however, we’ll require both of you, and any other owner of the property, to consent to the security agreement.
- What if we’re not both named on the deed or title to the house?
While each state may vary, generally, community property states view assets acquired during the marriage or legal relationship as equally owned by both parties. This includes residential property, as well as the fixtures in the property, regardless of who purchased the asset or whether both parties are named on the deed or title.