Apparently, nothing connects more than credit – and in this ironic saying is a bit right. The divorce of people who have previously taken out a joint loan may prove to be somewhat more difficult to carry out and significantly affect the finances of both parties. Depending on the amount and purpose of the loan, its further repayment, regardless of whether the co-borrowers are married or divorced, must remain unwavering. What is important is that despite the divorce, the borrower takes responsibility for its repayment jointly and severally – in short, it means that the bank is not really “interested” in who and in what proportion will the installments be paid. In the absence of repayment, both borrowers will be held liable. What about a mortgage after divorce? Can you free yourself from responsibility or take over all fees?
Divorce and mortgage – what you should know
A mortgage is usually characterized by a long repayment period. Most applicants decide to spread their installments over a period of 15 to even 35 years. However, life writes different scenarios and spouses do not always agree for such a long time. The number of divorces in Poland is increasing dramatically from year to year, and the number of mortgage loans is increasing in a similar way. In the event of divorce, it is worth knowing a few aspects that will allow a better understanding of the functioning of the loan and issues related to the ownership of the apartment after parting.
Divorce and credit – disconnection from debt
The first option that can help you solve the problem of repayment after divorce is disconnection from debt. This means deleting one of them from the list of borrowers. After disconnection from the debt, only one borrower is responsible for the loan and the other is free from its repayment obligation. In fact, in order to successfully disconnect from the debt, the borrower remaining on the loan must have adequate creditworthiness that will allow him to maintain the obligation and continue paying the installments. During such a procedure, the bank performs another capacity analysis and issues a positive or negative decision. In the latter case, you can consider joining another person’s debt regardless of your personal affiliation. It can be a family member or friend who has creditworthiness. Sometimes the bank, by way of an individual decision, may agree to be disconnected from the debt, subject to a one-off, partial early repayment of the loan. However, everything remains in the hands of the analyst. However, if the bank does not agree to disconnect, and it can do it for various reasons, which are usually dictated by its financial standing and legal situation – there is no other option than to stay with the loan of two borrowers and agree repayment terms. Unfortunately, a person who, despite moving out of the flat for which the loan was taken, is still a co-borrower, pays for this “fine” on the financial market. Has reduced creditworthiness and a lower chance of receiving a higher loan amount in the future, not to mention another mortgage. However, everything is a matter of income and financial capacity analysis. In the event of non-repayment, despite internal arrangements between former spouses – delays in repayment are charged to BIK of both borrowers and they will jointly and severally bear the consequences of the debt.
Flat for a loan and divorce – what about a flat for a loan after divorce?
After divorce, in addition to establishing further repayment terms, ex spouses should also decide who will own the property. As in the case of disconnection from debt – this is a rather difficult undertaking, so in the case of determining the owner of the property can be much easier. Even if one of the borrowers is separated from the debt, the spouses may still be the equal owners of the property. This issue is determined not by the bank, but by a notarial deed. On its basis, the bank makes changes to its system. However, you should consult a credit counselor before making this decision. In some cases, after this procedure, banks require a full repayment of the loan. For this reason, you should first receive the green light directly from the bank and then go to a notary public.
Loan repayment after divorce – will everyone benefit from it?
A mortgage after divorce can weigh heavily on both sides. Sometimes it is he who does not allow the couple to permanently break contacts. That is why many divorces decide to sell their property, pay off their debts in full and free themselves from their joint commitment. In the event that the bank does not agree to be disconnected from the debt, this may be the only way to get rid of the loan. The topic of divorce and franc mortgage may be slightly worse. As you know, after a sudden jump in franc that took place a few years ago, many people complain that the amount of their loan exceeds the value of the property. In this case, the sale of the property and mortgage payment may not apply. The only salvation for a couple who want to have nothing to do with each other are strenuous efforts to disconnect one of their spouses from debt.
Cash loan and divorce
In the case of a cash loan that the ex spouses took together, the procedure looks very similar. However, it must be admitted that due to the amount of cash loans and their duration – banks look more favorably on disconnection from debt. After submitting the application, the bank proceeds to analyze and re-assess the ability of the person who will remain with the debt. Depending on its effect, the bank may agree or reject the application.
If the bank rejects the debt transfer application, we have one more option. In this case, you can split the loan. Each borrower can take on a new commitment, which repays a joint loan in a predetermined proportion. After the full repayment, divorces no longer have a joint loan and are only responsible for one smaller loan.
In some divorce proceedings, the judge declares that one of the spouses is responsible for the joint debt. However, if there is a situation in which the spouse fails to make payments on time, the creditor will add the delayed payment to both credit reports, – despite what is in the divorce agreement. The loan agreement and all its provisions are still in force, even despite a court decision.