At that moment when the family is crumbling, the idea of which of the spouses hang their obligations to the bank does not come immediately. However, it’s impossible to pull for a long time,
because the date of the next payment is approaching, and therefore you need to decide how and who will have to repay the debt. The question of how the loan is divided during a divorce should be tried to be solved jointly by the former spouses, having come to a compromise.
If problems and misunderstandings arise, then it is already necessary to refer to the procedure for the division of obligations established by law. In a divorce, loans are divided in half, unless, of course, they were drawn up during the marriage, and the marriage contract or court decision provides for a different procedure for determining property and obligations between spouses.
Loan Agreement Section Procedure
How is the loan divided upon divorce by the bank itself? A financial institution may propose renegotiation of an agreement and share the balance of obligations between husband and wife by signing a new agreement with separate repayment schedules for each of the borrowers.
Another option is that the contract remains unchanged, just the court obliges the second spouse, who is not officially the borrower, to make a certain part of the obligatory payment in accordance with the current schedule, or to pay off his part of the debt ahead of schedule.
In addition, the bank may require termination of the contract and recommend the sale of property pledged with credit funds in order to return the balance of the debt and pay off ahead of schedule on obligations.
Pay only on your bills
Difficulties may arise if it is necessary to figure out how the loan is divided in case of a divorce, if the money was received not for general family needs under targeted programs (for example, to buy a house, cottage or car), but in cash. In this situation, in court, the parties will need to document the expenditure of borrowed funds, and if the money went to the personal needs of one of the spouses, then debt obligations can be transferred exclusively to him.
Even the uninitiated need to return the money
Are loans divided during a divorce if one of the spouses does not inform the second of the receipt of borrowed funds? The answer to this question is unequivocal: even if you are not in the know, you still have to repay your half of the debt. But it is possible, again with the help of the court, to disown such a “gift”, proving that the borrower was very secretive with the second half, and therefore did not tell where the money was coming from.
The third is not superfluous
Before deciding how the loan is divided in case of divorce if there are children in the family, the court will take into account the following facts: who the children will remain with, who will support them, what are the incomes of both parties, is the amount of alimony sufficient , and in whose interests was received when a loan.
The chances of staying with a child in your arms without a livelihood, and even with debts on the loans of the former spouse when applying to the minuscule court. All financial aspects of living and the maintenance of minors will be taken into account when considering the case and making a decision.