It should be remembered that as soon as two people get married, a property community is formed between them by law. Spouses who decide to divorce, and the mortgage has become theirs, reflect on the possibilities.
In this case, divorce, and the mortgage most often means that the person who remains in the acquired property becomes responsible for its repayment. However, not everyone knows that our oral arrangements between themselves are not binding on the bank in any way.
Therefore, if we have a mortgage after divorce, we need to complete a number of formalities. If we have a joint mortgage and the separation took place and was confirmed by the court, the change in our marriage situation for the bank does not matter. Therefore, ill-considered, joint credit and divorce can be a source of problems for former spouses.
Few people wonder what their loan will look like after a divorce and do not think what the consequences are.
What about a mortgage after divorce?
There are several ways you can go to solve a mortgage problem during a divorce. Most often it is one of the former spouses who stays in the apartment and he wants to be fully responsible for the repayment of the loan installment, but before that he should apply to the bank that granted the loan.
The ex-spouse must complete the application with the document releasing one of the parties from the loan. The application launches the appropriate procedure, which consists of checking the financial capacity. The bank wants to know if one person will be able to repay the monthly mortgage installment.
If the bank determines that the person is unable to settle the debt, asks for collateral or suggests that an additional person join the loan. If the bank approves the request, it will create a separate annex in which one of the spouses will become the only borrower.
Who repays the loan after divorce?
Repayment of a loan after a divorce can also be based on assuming a debt that is regulated by the Civil Code, art. 519-526. Repayment of a loan after divorce in the event of a takeover of debts boils down to the fact that one of your former spouses takes over the debts of the other.
Another option is the possibility of overpaying the mortgage so that the outstanding amount of the loan fits into the creditworthiness of the spouse who took over the repayment of the loan and kept the apartment.
If the bank does not agree to take over the debt, it is worth starting negotiations with it and asking for a different solution that is mutually beneficial.
Can you split a loan after a divorce?
In the case of a mortgage, it is up to the former spouses how they get along. When considering whether a loan can be divided after a divorce, the common good of the property and the individual situation of former spouses should be taken into account.
If they make such a decision and find that they still want to repay the loan installments for the apartment that will later inherit their descendant, they have such an opportunity.
How to split a mortgage after divorce?
There are many options that allow you to divide your mortgage after divorce. It all depends on the goodwill of the spouses, who must remember that both of them are equally responsible for paying it back. Some couples are wondering how to divide a flat with a loan after divorce and how to divide a mortgage after a divorce so that it is best for them.
They have many options that they can use. The division of an apartment is one of the options, but it can be a difficult solution due to its technical condition. In addition, they can take over the apartment with the obligation to repay the other spouse or take advantage of the opportunity to sell the apartment, with a split of the amount obtained from the buyer.
Rewriting your mortgage after divorce
It often happens that the spouses decide to rewrite the mortgage for one person after divorce, which is a relatively simple option. Then one of the parties is responsible for the overall acquisition of the mortgage after the divorce and its repayment.
It must be admitted that rewriting a mortgage for one spouse is not a difficult procedure, but requires the consent of the bank.
Divorce and family mortgage
When considering the situation of divorce and the “family on your own” mortgage, we must remember that the judgment between borrowers will not affect the fact that the interest rate subsidies will be suspended or the spouses will have to give back the money they have already received.
In this case, divorce and the “family on your own” loan prevents you from getting help again from this program, as the right to interest subsidies is a one-time help.
Selling a home with a mortgage after divorce
In the event that the bank does not agree to take over the debt because the creditworthiness of one of the spouses will not be sufficient, they may decide to sell the house with a mortgage after divorce.
The sale of premises should be well thought out because as a result of changes in the real estate market, the value of our plot could have fallen and its sale is not enough to pay off the debt.