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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Family Law
Satisfied Customers: 118723
Experience:  Experienced attorney: Family law, Estate Law, SS Law etc.
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My husband and I have been separated 12 years. Texas

Customer Question

My husband and I have been separated for about 12 years. Texas doesn't have a legal separation so it's all been worked out between him and me. We haven't gotten a divorce because we own a business and it would be difficult to split up our assets without
causing a hardship to the business. I do not, nor have I ever, worked at the business. I did work outside the house in a different career until the business got established. I do get direct deposits into my account each month to support myself. I recently
tried to get a home equity line of credit and intitially it looked very promising. My credit score is over 800, my home, valued at approximately $480,000, is paid off and the only debt I have is my vehicle and one small department store balance. Intitially
the bank approved me for a $240,000 line of credit at 3.75% interest, but when it came time to produce documents, I was not able to show a W2 or anything in my name. The money deposited to me is from a W2 but in my husband's name. The bank told me if I could
not produce a W2 in my name or some kind of documentation on our tax returns that the loan would be denied. I called a credit union and it was going to be the same situation. The bank suggested my husband and I could apply for the line of credit together which
I would prefer not to do, plus his credit score is much lower than mine and he has some negative factors which they said would need to be cleared up before proceeding. Is there anything I can do to be able to get a line of credit in my name under these circumstances?
Thank you.
Submitted: 2 years ago.
Category: Family Law
Expert:  Law Educator, Esq. replied 2 years ago.

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

You do not need a w-2, but you absolutely have to produce some proof of income for any loan. If you are filing separate taxes, since you are separated and should be filing "Married filing separate" then your tax return would be your proof of income. If not, you would need to product bank statements to prove your income, but they do have to have proof you are earning money to get you started to establish your credit

Customer: replied 2 years ago.
I have bank statements that show direct deposits into my account going back many, many years, but they said that's not proof enough.
Expert:  Law Educator, Esq. replied 2 years ago.

Thank you for your reply.

The bank statements combined with your tax forms showing income you are claiming is sufficient, it has to be or else self employed individuals would never get a loan and that is not the case.