The set-up is for the lender to not lose and in the long run come out ahead should one faulter on the deal/loan. If you faulter it allows for the owner/lender (by default) to get back what was originally lost on top of what was gotten in time payment arrangements along the way.

Ex:

You buy a home or car
Signor/spouse/co-signor or Signor/co-signer sign on the dotted line
You can no longer make the payments
You go into default
Signor/spouse/co-signor or Signor/co-signer is responsible
Your item gets repossessed/foreclosed
The owner now has to take back a depreciated item
The owner now, also , has to find a new buyer and loses income in the meantime
The original owner loses what is a steady agreed upon income
The original owner resells and starts the process all over again

Kind of like getting paid multiple times for the same item depending on the item being sold
Owner comes out ahead and you come out losing twice by losing the item and the money you paid in time payments

Signor/spouse/co-signor or Signor/co-signor is responsible. Take notice of the order of signor’s. The grantor is taking a chance by selling you somnething. S/He secures his/her end by making you sign a legal document so that should you default he has recourse. It goes without saying that if you cannot get something on your own credit then what is the grantor supposed to get out of you if you do default. So, by having a co-signor, the co-signor then becomes the primary one responsible as he is saying or making a statement that he feels the person is good for the money and will make the payment(s), (he/she is vouching for this person) and if he/she does not then he will. That is what co-signing means and states when you put your name on the dotted line. You accept responsibility for this person if and when they should default on making any of the payments. This is the reason you should not put your name on the doted line unless you have excess money to lose should it happen and it happens more than you think.

As to the spouse also being responsible even if they were not aware or were in the process of getting a divorce and such, marriage makes you one unit and therefore both liable as if it you were still one/single. An important reason to make a seperation legal by doing it through the court/legal system, it may give you more of a fighting advantage to not be included by being able to show proof that they did it knowing you were splitting up and did it out of spite to create bad credit for the unknowing partner. Not to say this will work in all circumstances, but it at lease shows the judge you were not aware and a judge may give lienientcy due to such.

The one who possesses what you want is going to make sure they do not come out a loser seeing you want what they have.

So, by being married you are each responsible for the other. Same as you are always to know everything that goes on under your roof and are held responsible.

Same as you are responsible for the actions of your children’s actions.

Someone is always going to be held responsible no matter what the situation.
Hence the reason to not take lightly co-signing for anyone and to be aware of everything and anything that goes on under your roof as you will be held responsible in one way or the other.

Hope this helps to make it more clear as to why and how one becomes responsiblefor anothers debt in spite of knowing nothing about it.

I am really shocked to hear that a 3rd party (who did not sign anything) maybe liable, like in the so called community property state.

There must have been a really good reason for having this law. I just can’t think of any.