Saturday, 19 July 2014

What about the housing loan after a divorce

The loan to buy a home or build a house inhale the real estate mortgage, usually jointly with spouse for many years. Despite this, it is usually long-term commitment, at the time of conclusion of the contract rather not wonder what will happen in 10 or 20 years with repayment of the loan. A can happen different, unforeseen situations which may affect our liquidity such as divorce.

What happens to the apartment or house?

Which spouse will be responsible for repayment of the loan? So when the marriage is divorced and credit is for life, not a situation of stalemate. Please take some solutions that are possible after consultation between the parties. Let us remember that at the time of the divorce between spouses created separate property. However, even after the dissolution of marriage both spouses are jointly and severally liable for the liabilities, which dragged along in the course of the marriage. The priority is then to decide whether both spouses will continue to jointly repay the loan if one of the parties will assume this responsibility. Spouses may also conclude an agreement by agreement, under which they can determine that one of them, eg more favorable financial situation, will assume the obligation to repay the loan. Undoubtedly should jointly determine these issues.

If there is a dispute between the spouses,

This division of marital property can be made before the court. It is important that the court may divide the property, shall not, however, the distribution of credit. The court may only indicate which spouse should pay back a loan. In view of the difficult financial situation of one of them, the court may require the repayment spouse who is in a better financial situation. It is binding only between spouses, but not to the financial institution (the creditor). In a situation where a spouse released by the Court from the obligation of paying the loan will be called upon to pay by bank and regulate debt, may claim from a former spouse the right of recourse. However, this requires the court proceedings.

Divorce does not affect the validity of the obligations

incurred by spouses under the loan agreement. Still for the repayment of the loan, they are responsible both. The court may decide to whom the property granted, but there is nothing to do with the repayment of the loan to the financial institution which granted the loan. Despite the fact that only one spouse uses the apartment, they have an obligation to repay both. In case of default in payment of loan installments will be paid to the bank to both Borrower. There is also the possibility of rewriting the entire loan on one of the spouses. To do this, take up negotiations with a financial institution which granted the loan, to change the terms of the loan agreement. You should then apply to the bank for permission to enter one of the spouses, as borrower only responsible for the repayment obligation. Remember, however, that the decision in this regard belongs to the bank. In the event of a divorce borrowers financial institution has no obligation to change the contents of the credit agreement.

The Bank is not obliged to agree

for such a solution, if it considers that the creditworthiness of one of the Borrower is not sufficient to repay the loan as the sole borrower. In order to increase and improve the creditworthiness of a financial institution may propose that the spouse who wants to be the sole borrower, introduced additional security such as współkredytobiorcę, guarantors or mortgage. Remember that the financial institution is essential that the credit agreement was developed further so that the credit installments were paid a fixed amount every month. If the bank agrees to such a solution, then the other spouse is not responsible for any liability to the bank.


Sami współkredytobiorcy can not take any decision without the consent of the financial institution. Earlier, it is important and rational agreement between the spouses to establish rules on the mortgage.

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