The couple appeared in Boston federal court to settle a dispute over their choice of lawyers in a sweeping college admissions bribery case.
Prosecutors had said their lawyers posed a potential conflict of interest. Loughlin, 55, and Giannulli, 56, said the firm's work for USC was unrelated to the admissions case and was handled by different lawyers.
The judge is expected to rule later on a potential conflict with another firm representing the actress and fashion designer, which also represents other defendants in the case.
In a July filing, the couple's legal team from Latham & Watkins announced that Giannulli and Loughlin wanted to maintain a united front in court.
"Giannulli and Loughlin are innocent of the charges brought against them and are eager to clear their names," the filing read. "And they believe their interests will be advanced most effectively by presenting a united front against the Government’s baseless accusations."
The attorneys added that Loughlin and Giannulli wanted a "common defense" and noted that they understood the risks involved with mutual representation, including the frequent legal argument that "the best defense for one client may depend on compromising the defense of the other client."
Loughlin and Giannulli's attorneys also said in their filing, "A common defense often gives strength against a common attack ... Whatever happens, Giannulli and Loughlin will have their interests fully protected, and the case will proceed without undue delay."
In March, the former "Fuller House" actress and the fashion designer were accused of paying $500,000 to alleged admissions scam mastermind William "Rick" Singer to get daughters Olivia Jade and Isabella recruited onto the USC crew team despite neither girl being a coxswain. The girls' statuses at the college are on hold amid an internal investigation into the admissions scam.
Giannulli and Loughlin rejected the plea deal that other parents allegedly involved in the case – including Felicity Huffman – accepted, reportedly because it included jail time. They were subsequently slapped with additional charges of money laundering and conspiracy. They each face up to 40 years behind bars if convicted of all counts.
Previous reports claimed that the disgraced couple would use ignorance as their defense. Sources close to Loughlin and Giannulli claim that they believed Singer was a "facilitator." They allege that Singer didn't inform Giannulli or Loughlin that their $500,000 was specifically being used as a bribe for the USC rowing coach.
However, the pair allegedly was aware that Singer wanted photos of their daughters on a rowing machine, but reportedly wasn't explicitly informed as to how the photos would be used.
The Associated Press contributed to this report