Credit during separation year
More than a third of all marriages are divorced in Germany. Not a really good forecast for those who still believe in great love. It is not uncommon for such a divorce to go hand in hand with a real mud fight over money, possessions and, not least, children. Probably the one who made good provision here and put on a marriage contract.
However, before a divorce can take place, both spouses have to endure the separation year. It represents a spatial separation of the parties and is intended to ensure that everyone involved is clear about whether they really want a divorce and whether they really cannot give marriage a chance.
If you are sure that the separation is not irreversible, you already have your own life on firm feet during the separation year. It can also happen that a loan has to be taken out during the separation year. After all, one household becomes two households and one or two purchases cannot be avoided.
But what about borrowing during the separation year? Can this be done easily? And can the separated spouse be used for the other spouse’s debts if the other spouse cannot service the loan taken out?
When can a loan be taken out during the separation year?
In principle, taking out a loan during the separation year should not be a problem. Because the banks can also grant loans to a spouse without the other partner having to sign it. A separation of goods can thus be done without any problems.
Despite this, a lot of care should be taken in the area of finance during the separation year. Nobody knows in advance how the divorce will turn out, what the costs will be, and how the court will regulate the separation of property and maintenance obligations. Those who are heavily in debt during the separation year by repaying a loan during the separation year can quickly fall into a debt trap after the divorce. It is therefore advisable to only take out a loan if this is really necessary.
What are the requirements?
In order to be able to implement the borrowing, the borrower must have a good credit rating. This applies in the year of separation as well as in an intact marriage or for single people.
It is therefore important that the Credit Bureau has no negative entries and the income is so high that all expenses can be paid comfortably. Here it must be ensured that possible maintenance payments must also be considered and considered as expenses. They must therefore also be specified when calculating the loan.
If the bank expresses the wish that the spouse also signs the loan, it must be clarified from the outset that this will not work due to the year of separation. The bank cannot insist on taking out the loan together. However, she will always ask if the borrower indicates that he is married. If there were no clear separation here, this would mean that both spouses could be held liable for the loan.
On top of that, it can happen that joint borrowing in the separation year violates the rules that exist during this phase of the marriage. The divorce could drag on unnecessarily, which is definitely not wanted.
Who is responsible for the loan during the separation year?
Only the borrower is liable for the loan during the separation year. It does not matter whether he is married or not. Because the bank can only hold those who have signed the loan application liable. This also applies if the actual borrower has no money at all to pay the loan and is therefore in default.
However, if both spouses have taken out and signed the loan, both spouses are also liable for it. Even if they are now in the separation year. Here it is important to find a mutually acceptable solution so that the repayment can proceed in an orderly fashion. If this does not happen, the donor bank can oblige both spouses.
As a rule, however, it is the case that either both partners make a pro rata contribution to the loan or one partner takes over the loan in full and, elsewhere, obtains financial compensation from the partner who does not service the loan. This compensation would be conceivable, for example, for maintenance payments.