Divorce and debts: 5 tips

Marital conditions? Community of goods?

Marital conditions? Community of goods?

Are you married? Then the agreements you made at that time determine who is liable for the debts. If you are married in community of property, you are both responsible for the debts. Even debts that were already there before you were married fall under the responsibility of both of you after the marriage. Also the debts that your ex-partner has caused and are only in his / her name.

For marital conditions or a cohabitation contract you can find in the conditions how the distribution of the debts has been agreed. If you have taken out new loans after signing the conditions, they are common debts. Did you not have any agreements on paper? Then you can only be held liable for financial obligations that have been entered into together.

Divorce agreement

Divorce agreement

In the divorce agreement, all debts can be distributed on paper. However, if your ex-partner does not comply with the agreements, you can still be held accountable for this.

To prevent you being confronted with surprises at a wedding in community of property, we are happy to give you 5 tips.

  1. When you get divorced, it is smart to get all your debts together as quickly as possible. In this way you prevent yourself from paying for later debts. The judge could then already look at the division of assets.
  2. Pay off outstanding debts as quickly as possible. If possible before the actual divorce, especially credit card debts and outstanding bills.
  3. See if it is possible for one of you to pay off the debts, and the other to transfer half to that person. Ask the lenders and mortgage lenders if it is possible to put the debt in one name. A mortgage lender will always check whether he can only bear the costs.
  4. You can also choose to both take out your own personal loan in order to each pay off your own share of the debts. You are then each liable for your own fault. Both partners must have sufficient income for this.
  5. If your partner cannot pay his / her part, you can also advance it so that you no longer have to pay interest.

Do you want to know what is sensible or possible for you? Then make an appointment for customized mortgage advice or with our credit advisors for more information about loans and credits.