To whom are the tops, and to whom are the roots: how is the loan divided during a divorce?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

At the moment when the family is collapsing, the thought of which of the spouses will have obligations to the bank does not come immediately. However, it is 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, you need to try to solve the former spouses together, coming to a compromise.

If problems and misunderstandings arise, then it is already necessary to refer to the procedure established by law for the division of obligations. During a divorce, loans are divided in half, unless, of course, they were issued during the marriage, and the marriage contract or court decision does not provide for a different procedure for determining property and obligations between spouses.

Procedure for sectioning a loan agreement

How is a loan divided by a bank in a divorce? A financial and credit institution may offer to reissue the contract and divide the balance of obligations between the husband andwife by signing a new agreement with separate repayment schedules for each of the borrowers.

Another option - the contract remains unchanged, just the court obliges the second spouse, who is not officially a borrower, to make a certain part of the mandatory payment in accordance with the current schedule, or to repay his part of the debt ahead of schedule at a time.

Additionally, the bank may require termination of the agreement and recommend the sale of the pledged property acquired with the loan in order to return the balance of the debt and pay off obligations ahead of schedule.

Pay only your own bills

Difficulties may arise if it is necessary to figure out how a loan is divided during a divorce, if the money was received not for general family needs under targeted programs (for example, to buy a home, summer house or car), but in cash. In this situation, in court, the parties will need to document the items of expenditure of borrowed funds, and if the money went to the personal needs of one of the spouses, then the 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 did not notify the other of the receipt of borrowed funds? The answer to this question is unequivocal: even if you don’t know, you still have to pay back your half of the debt. But you can, again with the help of the court, disown such a "gift", proving that the borrower was very secretive with the second half, andtherefore he did not say where he brings money from.

The third is not superfluous

Before deciding how to divide the loan in a divorce if there are children in the family, the court will take into account the following facts: with whom the children will remain, who will support them, what are the incomes of both parties, is the amount of alimony sufficient, and in whose interests the loan was once received.

The chances of being left with a child in your arms without a livelihood, and even with debts on loans from your ex-spouse when going to court are scanty. All financial aspects of residence and the maintenance of minors will be taken into account when considering the case and making a decision.