There is a statement that a mortgage connects couples more than a marriage vow. And indeed there is a grain of truth in it, because joint debts can be a problem for many years, no matter how the fate of the partners goes. So how do you pay back a mortgage after a divorce?
According to CSO statistics, almost every third marriage in Poland ends in divorce. Interestingly, this level has been relentlessly for several years. Poles decides to separate because of treason or mismatch between characters. A little less often we give up living together for financial or alcohol reasons of the spouse. Despite this, at the beginning of the marriage path many of us have joint financial obligations – and one of them is a mortgage. This is a key debt, because it often accompanies a couple of decades of life of the spouses and affects the overall financial situation.
As it turns out, a divorce does not change anything when it comes to joint debt. Even after marriage, divorces have the status of co-borrowers. So what to do with an apartment taken out for a loan?
Pursuant to the provisions of the Family and Guardianship Code, establishing a marriage means establishing a property community. Thus, it covers all assets that were acquired during marriage by one or both partners. During the relationship, none of them can therefore demand a division of property or manage part of it on their own. For example, all consent to rent, sublet or sell an apartment must be the decision of both partners.
Therefore, if the spouses plan to manage the property themselves, they can sign a property separation agreement. Then we deal with two personal assets for which the partners are individually responsible. However, signing intercyzy does not preclude the joint purchase of an apartment / house. Such real estate therefore operates on the basis of joint ownership and the definition of the shares of each of them.
However, before the paths of the spouses diverge for good and each of them begins a new stage of life, it is necessary to divide the property developed over the years. In addition to financial benefits, these may also be outstanding liabilities. Then the division of property becomes a conflict issue, most often decided by the court – either during the divorce hearing or in separate proceedings.
However, explaining who the loans you take will not be easy. Why? Well, the court during the divorce hearing focuses mainly on income and benefits arising from the collected property. He avoids settling decisions on jointly incurred liabilities, because in the case of a mortgage – each partner is liable to the bank! Simply put, the court’s task is to divide the property, and unpaid loans do not belong to it.
Although the divorce itself does not invalidate the loan agreement that the marriage has signed with the bank, there are ways to terminate it amicably. If no intercourse has been signed between the spouses, the quickest and cheapest way is to reach an agreement and get along. In this case, there are several options:
At the hearing about the division of property, the court may transfer an apartment that has been financed by the spouses’ mortgage to one of them. In such a situation, the other explorer is still required to settle the joint commitment. Why?
If both partners’ signatures appear under the loan agreement, the bank has the right to require payment of each of them! Additionally, it may happen that the spouse to whom the property was transferred does not pay for loan installments. Then the other half may expect questions from the creditor demanding repayment. Otherwise, the case will go to the bailiff. This means enforcement on account of, eg remuneration for work or movable property of debtors. Therefore, if the property goes to one of the spouses, the other should strive to have his data from the contract removed as soon as possible!
There is nothing to hide – the decision to divorce has various consequences. Changing marital status or residence is one of them. Therefore, in order to start a new stage of life well without the ongoing affairs of the past, it is worth dealing with the subject of mortgage in friendly circumstances.