Current loans and divorce: what to do?
During a divorce, a thorny question arises, what to do with current credits? How’s it going? Here are all our explanations to let you know what to do with these loans taken out by two.
The principle of solidarity, credits, and divorce
Sometimes two spouses decide to separate and initiate divorce proceedings, the procedure will allow them to share the property and especially to be able to start on new bases, both personal and financial. Simply put, credits in the process of being repaid will have to be repaid by both borrowers, even if a divorce has been declared. In other words, even if the divorce is declared, the ex-spouses will continue to repay the debt together, especially if the latter have opted for the principle of solidarity.
If one of the spouses decides to no longer pay, then the creditor can turn to the other spouse because the loans were taken out at a time when they were married, and solidary of the debt. To avoid these at least complicated situations, it is advisable to carry out a separation, thus making it possible to settle the credits or that one of the spouses takes over the credits in the process of being reimbursed.
Divorce: decoupling for outstanding loans
The principle of separation is simple, it is for one of the two spouses to no longer be considered as a debtor of debt, it is necessary for this to obtain the consent of the other spouse and above all to act on this will be an official document, here are the steps to follow:
- Obtain a written agreement from the ex-spouse agreeing to repay the credit (s) concerned alone
- Write a certificate stating that you are disassociating yourself from the credit (s) concerned
- Obtain a written agreement from the lender (s) accepting the unbinding
- Pass in front of the notary to validate the separation, with the drafting of an official document, releasing one of the two spouses from any responsibility.
The separation is particularly suitable for consumer loans, as in particular in the context of a car loan, where one of the two spouses collects the car and continues to repay the loan alone. Simply, for a home loan, the ex-spouse must also redeem the balance of his spouse.
Current mortgage and divorce: progress
If the two ex-spouses have taken out together a mortgage allowing them to become owners, still on the principle of solidarity, then they are both co-owners of the property. In the context of a separation, the spouse who takes over the repayment of the credit will also have to buy back the balance of his spouse, that is to say his calculated share of the value of the property. In this case, he must continue to repay a mortgage and take out another loan to buy back the property, which can sometimes be difficult to accumulate. The repurchase of credit thus makes it possible to redeem the various credits in progress and to add the amount of the balance in the financing, thus making it possible to reimburse a smaller monthly payment and over a longer duration.