Sister has asked me to be her guarantor

barbiedoll

VJsmum wrote: »

We can afford to pay rent if she doesn't, but it will be from money otherwise invested for our retirement. It is the prospect of it being unlimited liability that bothers me.

The "Squeeze" is long gone and her OH says he is seeing a divorce lawyer on Friday....

When they separated previously, they sold their house and divided the profit. He bought another house, she spent her share......

So you and your DH have saved wisely over the years, and have plans for your money. Your sister on the other hand.......

I think that you're going to get several pages of answers to your OP and I bet that 95% (at least) will say the same thing...don't do it.

warehouse

VJsmum wrote: »

When they separated previously, they sold their house and divided the profit. He bought another house, she spent her share......

...and there's your answer. Absolutely no way would I put my own house up against someone who's already shown they're bad with money.

My own sister had issues similar to this and asked my parents if they'd do the same for her, they said no and wouldn't budge. She knew better than to ask me. Guess what, she managed all on her own 2 feet.

fairy_lights

Could you let her stay with you for a while rather than act as a guarantor?

VJsmum

TBagpuss wrote: »

A second option would be to discuss with your husband whether you and he could afford to lend her enough to pay an increased deposit. This is still risky - she should be able to pay you each month instead of paying rent, but obly do it if both you and your husband agree that you can afford to lose the money if she doesn't repay you. And if you do do it, have formal written agreement which makes clear what she will pay and on wht basis (e.g. £x per month with a lump sum paid if/when she gets any lump sum from the divorce to clear any remaining balance)

This, in fact, is what i am thinking... TBH, I wouldn't even ask for it back if it were a couple of months (some friends had a property let under this system..)

fairy_lights wrote: »

Could you let her stay with you for a while rather than act as a guarantor?

[STRIKE]Fortunately[/STRIKE] Unfortunately I live 200 miles away...

She is currently staying with our elderly father, who probably can't be guarantor and wouldn't cope with the worry.

Interesting point about OH not being able to 'throw' her out, I will suggest she talks to someone about that (CAB?)

I do love her dearly, but she has f**ked up big time this time (after many other eff ups in her time)

THanks for the replies. She has messaged to say she is sorry she asked and not to feel bad. but I do..:(

Marvel1

VJsmum wrote: »

we can afford it to a certain extent but are close to retirement and have two kids of our own...

Says it all.

She doesn't pay you will have too, no ifs or buts.

Primrose

My own reaction, after having been badly let down by a family member who was the architect of their own downfall, is to say No. Your husband and your own marriage, which you have obviously nurtured, comes first and it's only when things start running into financial difficulty that you will find how conflicting family loyalties can cause serious marital problems.

On an objective basis, as this is the second relationship your sister has had which has fallen apart, does it not suggest to you that, much as you love her, there is an unreliable element about her that might equally end up being applied to your own relationship with her in the future?.

I wouldn't risk it !

Once your bail your sister out, if she has been disloyal in her marriage, might you find that she has the capacity to end up being equally disloyal to her sister?

I would offer to help in in non financial ways but tell her that you're not prepared to run the risk of your relationship similarly falling apart if things go wrong financially, so you're determined to keep anything related to money out of the equation.

If she and her husband co-own their house, he may well feel like throwing her out as he appears to have done, but actually she has legal right to remain living there until a formal separation or divorce argreement has been finalised.

-taff

No.

...........

System

When they separated previously, they sold their house and divided the profit. He bought another house, she spent her share......

More fool her...... NO!

mark5

Your liability would probably continue until she moves out, would you be okay with a bailiff knocking on your door demanding a few thousand on the spot?

DCFC79

Do you want to put the money you have saved for retirement on the line so you can be a guarantor for your sister ? She could of course not be a problem and be a wonderful tennant.