The couple is often led to jointly contract financial commitments for more or less significant amounts.
This is often the case for a personal loan , very practical on a daily basis to carry out your projects, which can easily become a concern if the relationship starts to deteriorate and suggests the possibility of a separation.
Whether it is a divorce, the dissolution of a PACS or simply the end of a common-law relationship or a concubinage, this change in marital status always has consequences for the bank commitments taken together. .
At the time of separation, the sharing of goods purchased in common remains the main topic of choice. However, the situation is more complex when the property has not finished being paid and the loan is still running. Once you buy a personal loan for two, you become co-borrowers.
Any agreements and arrangements you may make between you as to the payment of maturities after your divorce are unenforceable against the bank. In fact, spouses are still required to repay the loan until its term, and if one of them does not face its monthly payments, it is the other who will have to fill.
Principle of solidarity
It is about the principle of solidarity between spouses which concerns all the debts subscribed during the marriage for the good of the household without exception, and thus which benefit the two, even if they were contracted only by a single member of the couple.
As such you can not break your commitment, even if your income has changed. It is the same if one of the co-borrowers has no or no use of the vehicle acquired on credit or if he has not used for his personal needs a single penny of the personal loan granted to both persons .
Nevertheless, if the personal loan was taken out individually during the marriage by one of the two spouses, the borrower remains solely liable for its repayment.
In the case where it was intended to maintain the home or falls within the scope of the education of children, Article 220 of the Civil Code still provides for solidarity between spouses and a joint responsibility on the repayment of the loan.
Regularize the situation in the case of a joint account
This type of account is very convenient for paying common expenses. You have certainly taken out a personal loan to finance a family project but now that you separate, you must take into account that you are in solidarity with your debts related to it.
If the divorce takes place without tension, you will not encounter any particular problems. However, if the context is not favorable, it is advisable to arrange the situation without waiting because you may end up with deadlines to honor that does not concern you and worse, to not see a dime on the account .
The simplest approach would be to close the joint account in agreement with your ex-spouse and to repair the credit amicably.
Call on the bank
Otherwise, call on the bank to dissolve the joint account that will become a collective account. This means that a double signature will be needed to perform an operation. This system is not practical but the management will be more secure.
In addition, you have the opportunity to join the common account by registered mail with acknowledgment of receipt, which will allow your former spouse to keep the hand on the account which will then be completely individual.
Beware of any proxies
If you think you are not affected by the fact that you have an individual account as your main account, pay attention. You collect your salary and do most banking from this account that works under your unique signature.
After the separation, its management remains unchanged but it is likely that you granted a power of attorney to your spouse at the time of the opening without even reminding you.
He has the possibility to make payments as well as checks transfers without you have the right to refuse him. If you doubt giving him power of attorney, contact your bank advisor without delay.
In the case where a power of attorney is present, send a registered letter with acknowledgment of receipt to the bank holding the account to express your desire to denounce the delegation in question. You are under no obligation to inform your ex-spouse, unless he still has in his possession a credit card or a check book that he will return to the bank.
The transfer of the personal loan
It’s not because you divorce that the current personal loan disappears. Your commitment is still valid and you are both required to repay the monthly installments of the joint credit, regardless of the legal nature of your former union.
None of the co-borrowers can decide alone to disengage from the financial institution and let the other pay the full amount of the repayment. To put an end to the financial commitment that binds you, it is necessary to dissociate as quickly as possible your financial interests in order to regain your bank independence.
A common credit
The credit contracted in common is then transferred in full to only one of you, in this case the person who will benefit from the property acquired through the sum of money lent.
In this context, the bank renounces the guarantee of one of the two co-borrowers and the second reimburses only the remaining monthly payments either with its initial guarantee, or with a new guarantee possibly required by the credit institution.
Indeed, the transfer of the personal loan represents a risk for the financial institution that can only rely on one debtor to repay the credit. As a result, an in-depth analysis will be put in place to examine the borrower’s resources and repayment capacity after deducting the costs associated with the separation. In case of agreement, the liquidation of community must be recorded at the notary.
Finally, the separation will become effective once the divorce and all formalities completed.
A common agreement
Credit institutions are entitled to refuse that a consumer loan is taken over by one of the co-borrowers while it was initially underwritten by two people in solidarity. It is therefore essential to organize yourself so that the deadlines are regularly honored or your details will be entered in the credit reimbursement file.
If you financed a vehicle through the personal loan, the subject of your property may give rise to litigation.
Who is the owner?
It must be known that the only owner of the vehicle is the one who has paid the price or paid the installments of the loan to finance the car. In case of disagreement on this subject, it will be up to the one who feels aggrieved to seize the court so that it decides on the ownership of the vehicle concerned.
In the context of a separation, it is always preferable to privilege the dialogue to find an amicable agreement in all serenity and thus avoid difficulties that will only get worse. If you can not decide who will buy the credit, you still have the choice to sell it.
The sale price then makes it possible to refund to the credit institution the capital remaining due and the surplus is shared between the spouses.
If you want to break the common financial commitment, another solution is to prepay the entire personal credit or more than your share taking into account the conditions in the loan agreement.
If your means allow you, you are thus discharged of your obligations and you will then have the possibility to turn against your former spouse to recover your due.