FAQs for Step 67: Determine Personal Net Worth
Q: Why should we have to provide the bank with personal net worth statements for both me and my spouse? My spouse considers his financial information private and refuses to share it.
We gather you’re looking for a loan, and that both you and your spouse are signing and responsible for repaying the loan. A spouse’s financial situation often reflects on or spills over into the other partner’s financial life, and banks can’t be expected to view your financial situation as different from your spouse’s. So, right or wrong, they will usually require signatures of both parties on loans. We think this is not always the case, and the other dynamic that kicks into play is that your lender’s degree of friendliness warms up as your personal net worth increases. In other words, the more you’re worth, the more eager lenders are to deal with you. The more secure your loan and your ability to repay the loan, the easier it is to borrow money. So, if you already have deep pockets, you’re more likely to find a lender that will not require your spouse’s signature on a loan. Until you enjoy that level of financial comfort, you’re going to have to convince your spouse to share his net worth statement. No statement of net worth, no loan.
We welcome all questions, comments and feedback and look forward to hearing from you!