Why does bank require Separation Amnt for LOC

[AlexaJJ]

I am having a hard time getting a straight answer from my bank so thought I would see if anyone could help me here. My common law ex and I separated in September 2008. We have sold the house and divided all our personal belongings. The only issue out there is custody, access and child support. The short answer of why these matters is outstanding is because he is stalling.

My question is that I am getting a joint line of credit with my boyfriend as he is going to help me pay off my debt so that we can have a better future together which is debt free. The bank is asking for a Separation Agreement. Why would they need it when we were common law in the first place and everything has been dealt with. Financially we qualify so it is not like I need to prove what I am getting in child support (which is nothing by the way but that is another story) so I can't figure this out. Can anyone give me any insight as to why.

Thanks.

[Foredeck]

There's a few reasons they require it.

How do they know that you're not paying him SS or CS? You may qualify now, but they have to prove that you don't have any other monthly payments to make.

And, also, they have to verify that you don't owe him any lump sum payments.

It sucks, I'm in the process of applying for a mortgage and I can't proceed untill my ex signs the separation agreement, which she is refusing to as well. But, from a bank's stand point, they have to cover their rear end.

[AlexaJJ]

Thanks for your reply. I guess I wasn't clear in my post. I have custody of my kids with my ex having every other weekend access so I am not paying child support. He stopped paying me child support last September.

I do understand what you are saying with respect to any lump sum payments but considering that we were common law there is no equalization payment that is made and the matrimonial house has been sold and proceeds were dispursed and I can prove that so am hoping that will suffice with the bank.

Thanks.

[Foredeck]

But, how does the bank know that you have full custody?

This is the best proof they can have that you have the custody you say you have, and that all matters in regards to your separation is final.

I think the only other proof that you could provide that would be satisfactory to them would be to have your ex sign off on custody. And, he may not do that without the full agreement. Without his signature, they would basically just take your word for it.

[AlexaJJ]

The bank knows I have custody due to the fact that there was domestic abuse involved and my ex was arrested and out on bail and had supervised access visits. He now has a peace bond and I have a letter from his lawyer setting out his access arrangements but he refuses to deal with things so getting an agreement is right now is not possible. My ex just doesn't get that having an agreement in place is so important.

I am meeting with the bank tonight so hoping that I have enough paperwork to be able to show the separation and get the LOC. Thanks again.