COPYRIGHTED MATERIAL
WHAT DOES THAT MEAN?
TERM
DEFINITION
Access vocab ashcards at www.c21publishing.com co-debtor one of two or more debtors, both of whom are liable for payment of the same debt. community property ownership system in effect in nine states whereby each spouse owns half of any asset acquired after marriage regardless of which spouse acquired it. concurrent ownership joint ownership of a property by two or more people. co-signor a person who has agreed in writing to be responsible for paying another person’s debt should that person default. guarantor a person who agrees to be responsible for another’s debt if the other fails to pay and the lender cannot collect the debt from the borrower. joint credit credit (a loan) issued to two or more people with joint and equal responsibility for repaying the entire debt. joint liability shared and equal responsibility for a debt. joint ownership shared ownership of an asset. joint tenancy an equal and undivided ownership of an asset by two or more people with a right of survivorship. ownership interest the share of an asset that a person owns; often stated as a percentage such as a 20% ownership interest. repossession the creditor’s taking back of an asset when the borrower defaults on repayment of the loan that financed the purchase of the asset. right of survivorship the automatic transfer of ownership of a joint tenant's interest to the other joint tenant(s) when the joint tenant dies. tenancy-in-common TIC; a shared ownership in which each holder has a distinct, separately transferable interest with no right of survivorship. PRODUCT PREVIEW I. Forms of Co-Ownership As you get older and start acquiring assets, you will have many occasions to consider whether you should buy and own something together with someone else. It could be a boyfriend, girlfriend, husband, wife, sister, brother, business partner, or just a friend. Whether it’s a home, car, boat, or investment, before you decide to buy and own something with another person, it’s important to have a clear understanding of the principles and pitfalls of joint ownership . Caution, Please! Joint ownership of assets can be risky and Joint ownership arrangements complex. They can have unintended tax, inheritance, or other consequences. A financially literate person should understand
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