Often families break up until the time of repayment of debts on housing purchased on credit. The question arises – how to divide a residence in a mortgage with a divorce so that the interests of both former mates are respected?
Given the general trend towards an increase in the statistics of the decay of married couples in our country, this problem is becoming increasingly important. Let’s try together to find ways to solve it.
The settlement covenant between the former partners
When the apartment is acquired in marriage, and the husband and wife are co-borrowers. The first thing they are required to do when deciding on a divorce is to inform the bank about the change in their financial position. The financial institution must notify which of the former mates remains the owner of the credit on property, and will pay the debts. If you do not notify the bank, the court will do it forcibly – in such cases the creditor may be involved in the process as a third party.
A married residence in a credit on estate
Ideally, the former husband and wife will be able to negotiate and enter into a settlement agreement, continuing the joint payments. In this case, after paying off the debt, they will be able to sell the residence, divide the money or exchange the mortgage apartment for a few ones.
At the same time, payments can be divided between them equally or in a different proportion. It should be understood that the divorce does not relieve the obligations under the mortgage contract with both spouses for joint liability. If one of them ceases to pay, the second may demand reimbursement of its costs.
Court decision on the division of property
Practice shows that the settlement covenant between the former spouses is achieved very rarely. More often there are difficulties – how to divide a privatized apartment? If the property is jointly owned, you cannot do it without a court, and there may be several solutions:
- Exchange of the flat.
- Sale of real estate, followed by the division of funds received between the parties.
- Apartments is passed to one of the mates, who pays another compensation.
If the mortgage flat was purchased before marriage
The housing privatized before the marriage remains with the owner specified in the documents. The second party can count on reimbursement of large expenses for repairs or redevelopment made during the marriage. All these expenses must be documented in court.
When it is impossible to agree
A dwelling acquired in a credit on property, on which the spouses cannot come to an agreement, is put up for auction, and goes under the hammer at auction. In this case, usually, its price is significantly lower than the market, the proceeds go to pay off the debt, and the balance is divided between the partners.
Section of estate under a marriage contract
In recent years, estate issues between husband and wife are increasingly being resolved through a special covenant. A marriage contract allows you to avoid many problems during a divorce – this document usually states what will belong to anyone. You can draw up a covenant with any of the notaries, which is a guarantee of the legitimacy of the wording, excluding the possibility of forgery. The marriage contract may be amended or supplemented by agreement of the parties at any time.
Guys! Let’s live in peace!
If the question arises: credit on property, how to divide with a divorce, you should first try to negotiate in an amicable way. If this does not succeed, the former spouses will face trial and significant material losses. The husband and wife can also sell their mortgage housing with the consent of the bank, and here will be the help of an experienced realtor.