It is often said that a loan contract is more durable than a marriage vow. And it’s hard to disagree with this statement. The number of divorces increases year by year … And the commitments made during the marriage weigh on the future of both former spouses.
What happens to the loan after divorce?
During the marriage, most couples have a property community. This means that their assets are shared. But they also have joint commitments, including loans. After termination of marriage by divorce, the property community ceases. The joint property is divided among ex partners. However, the spouses’ joint debts are not broken down. What is the conclusion?
If the spouses took a loan together, they are obliged to repay it after divorce. This commitment is joint and several, which according to art. 366 of the Civil Code, when the next installment of the loan does not affect the time the bank demand repayment from:
– one of the former spouses,
– one of them.
Payment of the installment due by one of the debtors releases the obligation to repay the other spouse’s bank. “Until the creditor is fully satisfied, all solidarity debtors remain obliged (Article 366 p 2 of the Civil Code).” Therefore, the bank does not care which debtor pays the installments … It is important that they affect time.
How to get rid of a joint loan?
If we are dealing with a mortgage, the first thought that comes to our mind is the sale of a shared property. This is only a seemingly good solution. The amount obtained from the sale will not always be high enough to cover our obligations. A hasty decision may result in us being left without an apartment and the rest of the loan to be repaid.
Renting a property is another popular option. Such action requires the cooperation of both former spouses, which is not always possible … In addition, such a solution is not always satisfactory. After all, former partners must think about their future … Both of them will probably be thinking about buying apartments for themselves. And with a home loan for shared housing, this will not be possible, because they will not have sufficient creditworthiness.
Who will take over the debts?
It is also possible for one of the spouses to take over the debt. In this case, the consent of the other spouse and the bank is required. If we decide on such a solution, we must take into account an increase in the monthly installment. We also need to have high earnings. Therefore, it may happen that the ban does not agree to such a solution … And then what?
In this case, we may consider adding a new life partner or other family member to the loan to replace your spouse. The bank will reassess joint creditworthiness.
We can also refinance our loan in another bank. We may have a problem getting another mortgage. It will be much easier if we apply for a cash loan …
In summary, getting rid of a joint loan after a divorce is not an easy matter. A lot in this case will depend on the cooperation of both former partners.