Apparently, it is easier to divorce a spouse than a bank or loan company … and the best know about it is those who, after divorce, still repay jointly drawn loans and cash loans. Do we have to pay all debts together? Who is responsible for paying off loans after divorce?
Who pays for loans after divorce?
Division of property after divorce can be done in court or before a notary public. It usually includes money, cars, real estate and other valuables. And what if not only objects but also financial obligations are common? If the loan was taken out by both spouses, they will still have to pay it back after divorce.
The same applies to mortgage loans. Assuming that the house that was built on the loan is fully granted to the wife after divorce, this does not mean that the husband who no longer lives in it is exempt from paying installments. The loan will continue to apply to both as before the divorce. What is worse, if one of the ex-spouses does not pay the installments, the payment will be charged to the other, despite the fact that he pays his part of the debts. Unfortunately, this type of situation occurs very often and it is difficult to secure such an eventuality.
Transfer of the loan to one of the spouses
It is possible to transfer a loan or mortgage to only one of the spouses. This can be done if one of the spouses moves out of the house for a loan and does not want to pay for their expert. Of course, both sides must agree to such a transfer of debt. If the ex-spouses agree that only one of the parties will continue to pay the loan, they must submit a relevant annex to the contract. However, before the bank accepts such a request, it will need to carefully analyze the financial situation of the spouse to whom the debt repayment is to be transferred.
Divorce and payday loans
During marriage, not only loans or mortgages are taken, but also various loans in installments, payday loans or car loans. What happens to the repayment of such obligations after divorce? If the loans were taken out by both spouses, they still have to pay them back together. However, a quick payday loan or loan without certificates is usually taken on your own. Therefore, after divorce, the spouse is responsible for paying it off. In addition, very often quick loans are made without the knowledge of the spouse. In such a situation, after divorce, the ex-spouse is not responsible for the debt of which he did not know.
As you can see, joint loans and credits for years combine better than many marriages. Often, even after divorce, we must pay the debt of the former spouse. That is why we should remember that every financial commitment involves a lot of responsibility and we should not borrow more than we can pay back.