Debt rescheduling – This is how you separate financially

Debt can affect anyone – because many people take out a loan over the course of their lives. However, separation becomes complicated. If you have taken out a loan with your ex-partner, although you do not have the right thing, you may be asked to pay for the payment. If you want to counteract such a scenario, you should consider rescheduling a divorce. In this way it can be clearly distinguished who owns which debt. for further explanation


Who is responsible for the debt in the event of a divorce?

Who is responsible for the debt in the event of a divorce?

In principle, spouses are not liable for the partner’s debt. This is especially true if the debt existed before the marriage and any loan was taken out by only one person. A marriage contract also has a major impact on liability. If a separation of goods was agreed in it, the debts only concern the person who took them on. However, in the case of a separation, it is not always possible to define exactly who is responsible for paying off the loans. This is especially true if a loan has been taken out together. In this case, a debt rescheduling can prove to be useful during the separation.


How to deal with common debts?

How to deal with common debts?

If spouses have signed a loan agreement together, the situation is a little more difficult. It is often worthwhile to involve a partner as a second borrower, as this will make interest rates significantly cheaper. In the case of a divorce, however, this quickly becomes a problem. Because not everyone is liable for half the debt. Rather, it is up to the creditors to whom they should contact if the repayments are not made regularly. Of course, you have the option of getting half of the money back from your ex-partner. However, there is no guarantee that you will actually receive it.


This is important to consider when owning real estate

Even when it comes to paying off real estate, it is difficult to find an agreement. This is particularly the case if both parties are interested in the house or if nobody wants to keep the property. But even if an agreement is found, your partner may not pay part of the debt – in the end, you will be asked to pay. You can avoid this scenario by rescheduling a divorce.


Debt restructuring as a solution to divorce

Debt restructuring

Ideally, the divorce clarifies who pays off the loan taken out. This willingness must, of course, be taken into account when equalizing profits. Specifically, this means that the person who pays the loan for a property then receives it. The matter is more difficult if there is no profit to be distributed or if – as already mentioned – there is no interest in material property. In addition, you never have a guarantee that your ex-partner will actually pay part of the debt – in which case the creditors could turn to you again.

If you want to be on the safe side, debt restructuring in the case of divorce proves useful. As part of the debt rescheduling process, both partners are taking outa new installment loan. The amount is half your old loan. The joint loan is then repaid. In the course of this debt rescheduling in the case of divorce, a prepayment penalty of one percent of the remaining amount is due. However, this is mostly offset by the lower interest rate on the new loan.

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