Loans and divorce: who keeps custody of debts?
Love and money have never gotten along and if it comes to heartbreak and debt, it is even worse. If we have personal loans being the two holders, even if we divorce the bank, we will continue to consider both those responsible for the credit, explains the financial comparator loanmecredit .com, so we must know the alternatives we have to know who He will remain with the custody of the credits.
Cancel the loan, the option with fewer complications
The credit is canceled, the rage is over. The simplest alternative for both would be to cancel the loan we have in effect, that is, return the outstanding money and pay off the debt. In this way the subject will be settled.
It is usually an easy alternative when the consumer credit is a physical asset, such as buying a car, since you can sell the car and thus repay the loan. However, it is a more complicated solution when the funded project cannot be sold, such as a reform or the financing of studies.
Change ownership to one of the spouses
The second most advisable alternative when it is not possible to cancel the loan, either because one of the spouses wants to keep the financed asset or because it is not possible to repay the loan early, is to transfer the debt to a single owner, who will use the financed asset.
This alternative, although it is more comfortable at an economic level, has the disadvantage that the bank must give its approval so that the loan will be in the hands of a single holder and its economic level This should be enough to guarantee repayment of the loan , loanmecredit explains.
Shared credit custody, only when there is trust
Finally, the third option and the most dangerous according to the relationship with our ex-partner is to continue paying the loan between them without changing anything. As an advantage, this option allows us to avoid paperwork and negotiations. However, it has the great disadvantage that we must continue to have a common account to pay the monthly installments, that an agreement has been reached on who will enjoy the well financed and that there is sufficient confidence to know that the Other holder will continue to pay his share of the monthly payment.
Recall that in the eyes of the entity we are both still holders, so a default of one of the spouses will affect both.
Sometimes it can happen that the divorce agreement establishes one of the holders as the person responsible for the repayment of the credit. This usually happens when one of the spouses will be the one who enjoys the good paid for by the loan (he keeps the car, for example). However, there are still two owners and, therefore, two responsible. In this way, if the responsible holder does not pay any fee, it will affect both.