Full question:
husband and i own house jointly w right of survivorship/bought house together with my money (paper trail goes back 8 years before our marriage) he has a secured business loan that he took out before we owned this house, and because of his business loss has been unable to pay loan back, there is now a lien against house, what is the extent of my liability, also, would a 'NFTL' lien come before the business lien, even if filed after? thanks
- Category: Real Property
- Subcategory: Joint Tenants
- Date:
- State: Connecticut
Answer:
If your husband has a lien against the house due to his business loan, the extent of your liability depends on how the property is titled. If you own the house as tenants by the entireties, creditors generally cannot force a sale to satisfy your husband's debt. However, if you own it as joint tenants, creditors may be able to sell the property to recover the debt, but only up to your husband's equity in it. You would keep your share of the proceeds from a sale.
Typically, a joint owner is not liable for the other owner's debts unless they are authorized users, guarantors, or co-signers. In community property states, the non-debtor spouse's assets may still be at risk in certain situations, such as bankruptcy or divorce.
Regarding lien priority, it is generally determined by the recording date. A mortgage holder usually has priority over later filed liens. Thus, if the business lien was filed before the NFTL lien, the business lien would take precedence (Fla. Stat. § 695.01). If the property is sold in foreclosure and there are no proceeds left for junior creditors, they may seek payment from other assets of the debtor.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.