Promissory Notes

When Does a Spouse Need to Sign a Promissory Note?

To make a Promissory Note valid, the borrower must sign the note. Sometimes, the lender may ask the borrower’s spouse to sign the Promissory Note as well when the loan is made for a business that both husband and wife run, or for a property that both spouses own, community property or jointly-held property.

By having both spouses sign the note, the lender has more protection: the lender could get a judgment against not only the borrower but also the borrower’s spouse. Also, the lender could seize the properties in the borrower’s name alone and in the borrower’s spouse’s name alone as well as put a lien on jointly-owned assets.