Everyone knows that property acquired by spouses after marriage registration is considered jointly acquired and in case of divorce is subject to division. At the same time, very few people know that jointly acquired debts are also subject to division. How the debts will be divided, the spouses can agree on their own, and if they are not able to cope with such a task, the court will do it for them.
It is not easy to determine who should pay for credit obligations and how much if the loan transaction was made by one of the spouses before the marriage was concluded.
Recognition of credit as general
When a person has issued a loan before marriage in their own name, such debt is legally considered their own. At the same time, there are certain situations when such credit debt can be recognized as common for divorcing spouses. The basis for recognizing a loan as general is a situation where the repayment of such debt was made from the general family budget. The loan will also be considered jointly acquired if the money received from the lender was spent on the needs of a young family.
Property purchased with a loan used by both spouses is also considered joint, and therefore the loan must be paid together. According to the law, the spouses have equal rights and bear equal responsibility, and therefore, during the divorce, the acquired property and debts are usually divided equally between them.
The renewal of the loan after marriage
After the marriage is officially registered, the person who issued the prenuptial loan can conclude an additional agreement with their lender, refinance the loan, etc., i.e., reissue the loan. In this case, the loan can be officially recognized as earned during the marriage, but only if such a reissue was authorized by another spouse.
The loan is automatically shared if the loan debt has been restructured.
Section of credit obligations under a prenuptial agreement
Today, not many people who get married are signing a so-called marriage contract. If such a document was drawn up and signed, the section of credit obligations under a pre-marital loan agreement is significantly simplified. This is because such a document clearly states all the obligations of each spouse in the event of a divorce, including how the pre-marital loan will be repaid.
Experts today advise to resort to the conclusion of a marriage contract or to draw up a special agreement on the division of debts and property in case of divorce before marriage. They help you quickly and easily cope with all the difficulties that arise during a divorce.
If neither the agreement nor the contract has been concluded, it is profitable to get out of the credit debt section by applying to the court with documents that can act as reliable evidence that the second spouse will not be able to challenge.