In life, there are projects that succeed and others that fail. It is quite common to see a married couple taking out a mortgage for home ownership, eventually getting divorced. In these cases, what options are available?
Solidarity clause concept
Two married people who wish to take out a mortgage are all equally responsible for the repayment of this loan. The responsibility of each will then depend on the plan chosen by the couple.
If the latter has chosen the separation of property, each of the spouses will then have to repay the credit up to their contribution. But if the marriage was under the regime of the community reduced to acquests, the property acquired belongs to the two spouses. The repayment of the corresponding real estate loan then comes to both, in solidarity.
Option number 1: one of the spouses wishes to keep the property
If the couple decides to divorce while a mortgage is in progress, and if one of the spouses wishes to keep the property, then he will have to buy the share of the other, in addition to taking over the remaining credit due to the bank.
Obviously, whoever buys another’s share will have to have the resources to do so. Besides, the bank will have to analyze its solvency, to establish if it can assure only the reimbursement remaining due.
Option number 2: none of the spouses wants to keep the property
In the event that the mortgage is still in progress but neither of the two spouses want to take back the property, then the sale will have to be made.
As soon as the sale is concluded, the notary will take care of settling the mortgage in progress and will return the rest of the amount obtained to the spouses. Again, the marriage regime will determine the share of each.
In the event of marriage under the reduced community regime, each will have 50% of the amount. In the event of a separation of property regime, the spouses will be paid according to their contribution in the acquisition of the property.
Option number 3: the spouses wish to divorce but remain co-owners
It may also happen that the newly divorced do not want to sell the property, and neither of them wants to buy the other’s share. As co-owners, they can then decide to continue living together or put the property up for rent.
In this case, the two parties must continue to reimburse the mortgage jointly and severally.