Any young couple, bound by marriage, is sure that they have it forever. From the very first days of life together, they build their dreams and try to realize them as quickly as possible. But, alas, sometimes people who once understood each other perfectly become strangers. And it comes to divorce.
Divorce: to whom - what?
All property acquired together over the years of family life, according to the current legislation between the spouses is divided equally. If the decision is made after one or two years of marriage, then there is not much common property. Worse, if the couple decided to break up after many years spent together.
If, for example, the spouse purchased an apartment in his own name during the marriage, then the spouse claims one half of the real estate, and it does not matter whose money it was purchased for. The same goes for the rest of the property, whether movable or immovable.
If the car, apartment, cottage, etc. were purchased for cash, then problems with the partition usually do not arise. But what about property that has not yet been settled with a bank? Are loans divided during a divorce? And who will pay them?
What to do with consumer credit?
When it comes to cash loans or consumer credit then the solution is quite simple. If the loan was taken for family needs, then its repayment, in fact, comes from the general budget. If at the time of the dissolution of the marriage the outstanding part of the loan remained, then it should be distributed between the spouses.
How is consumer credit divided in a divorce? The return of credit debts is not solved by the usual statement: "Your loan, you pay it." According to the Family Code, it is completely unimportant in whose name the loan agreement was drawn up, since it is believed that loans taken by a family person go to meet the needs of his family. Therefore, the loan will have to be settled together.
There are some nuances here: the loan is divided in proportion to the part of the property that you got during the jointly acquired section. If you got one third of the purchased property, you will have to pay the same part of the debt for it. That is, in a divorce, loans are divided in half, if the property purchased with this money was divided in the same way. But the banks do not care what decision will be made. The main thing is that the debt be paid in full and without delay.
A consumer loan taken before marriage is the personal debt of the borrower, but his delay in marriage is the debt of both spouses.
Spent the money on yourself? You and pay!
If by logic, then borrowed money from one spouse should be paid to him. But by law, a car purchased in a marriage, albeit on credit, must be divided between both spouses. Therefore, it does not mean that if the loan is issued to the wife, she alone after the divorce will have to pay off the rest of the debt.
How is a loan divided in a divorce? In each specific case, there are some nuances. For example, if a spouse took a loan in order to go abroad on vacation, and the wife was at home with the children at that time, then the loan obligations are considered to be his only.
To refuse payments on such a loan, you will need to provide evidence to the court. The fact that the money was spent on personal needs will need documentary evidence.
Didn't know about debt? Don't think about it now
It happens that you live with a person, you live, you don’t suspect anything, and at that time the other half gets a car on credit, starts a credit card and spends the entire limit on boozing with friends. And this news comes up only a few years later, after the divorce, when the bank employees begin to search for the former spouse to collect the accumulated debt.
How is the loan divided in a divorce in this case? Do not worry, even if the bank will try to recover your loan debt. It is only necessary to prove that you did not know about the money taken, and they did not go to meet family needs. As evidence, you can use the testimony of witnesses of inappropriate behavior of the spouse. In this case, the bank, even in court, will not be able to make any claims to you.
Credit Card Obligation - Owner Problems
After a divorce, is a credit card divided? "Credit cards" are considered personal monetary resources. To prove that the money was withdrawn from the account for family needs is almost impossible. Therefore, you can file a lawsuit for the joint repayment of a credit card only if there is documentary evidence that the money was spent on the purchase of common property.
Moreover, it is worth noting that the court will not accept any other evidence to confirm your words, except for checks, receipts and invoices.
How is a loan to buy a car divided, depending on how, by whom and under what circumstances it was issued?
Depending on the circumstances, the court makes different decisions on how the loan is divided upon divorce.
If the car was taken on credit before marriage, then the return of the rest of the debt lies on the shoulders of the borrowing spouse. Consequently, the car remains behind him in the division of property.
A car purchased in marriage for a special loan, after a divorce, in the absence of special circumstances, is divided between the spouses in equal shares.
If the second spouse was not aware that the car was purchased on credit and could prove it in court, then the full repayment of the debt remains with the borrowing spouse.
And how is the loan divided after a divorce, if the second spouse acted as a guarantor of the first when receiving a car loan before marriage? In this case, the remaining loan debt will be distributed between both.
Separation of secured loans
How is a loan divided during a divorce, if it was taken on bail, because it differs not only in that its amount is much higher than a consumer loan, but also in that when you divorce, you also have to divide the collateral object?
According to the Family Code, there are several options for the section:
- The balance of the debt is paid by the former spouses in those shares, which were determined when the collateral object was divided.
- One of the spouses assumes the obligation to fully repay the debt. In this case, after the loan is paid, the collateral remains in his property, and the second spouse is paid compensation for part of the debt paid in the marriage.
If the spouses do not agree among themselves, in this case there is the possibility of selling the collateral and repaying the loan debt. And then the question arises: “Is such a sale possible?” It turns out, yes. It is only necessary to obtain permission from the creditor bank and conduct the transaction in the presence of its employee. Before the sale, the encumbrance on the collateral is removed. The amount received from the transaction is paid as an early repayment, and the remaining money is divided equally between the spouses.
How is a car loan taken on a divorce divided?
Since dividing a car into any parts during a divorce is a rather stupid thing, the judge during the divorce proceedings usually proceeds according to the pattern: one gets the car, the other - compensation for it.
And if the car was purchased on credit? Who will get the car, and who will have to pay the debt? When solving this problem, it is of great importance when a car loan was issued, at what expense the debt was paid, whether the second spouse agreed to buy a car. According to the Family Code, the obligation to the bank during marriage is divided between spouses in equal shares.
The spouse, in whose name the loan agreement was drawn up, is paid compensation equal to half the remaining debt. Same thing with the car. Anyone who, by a court decision in the division of property gets a vehicle, pays another compensation equal to half its value. Usually, the right to a car remains with those who need it more, or those who use it most actively.
Therefore, during the trial, the following documents should be provided:
- Title
- Help on the average cost of the car.
- Loan agreement.
- Extract from the court decision on divorce.
Each divorce proceedings takes place individually, so you can’t say for sure how the loan is divided during a divorce. Each family has its own rules.
The best solution is not to bring everything to court
In practice, the sharing of loan obligations is a rather complicated and time-consuming business. The lawsuit is usually delayed for many months, and financial costs require considerable. Therefore, it is better not to bring it to court.
The most optimal solution is to consult a credit attorney. He will correctly determine what part of the loan debts must be paid to each of the spouses and will help to consolidate such an agreement in the framework of the law.
