Real Estate. What happens to your credit in the event of a divorce?

Housing is often a very thorny issue to resolve in the event of divorce, particularly with regard to its allocation, but also when it is the subject of an ongoing mortgage.

The prevailing rule is that all credit must be repaid; which means that the loan does not disappear with the divorce. Several situations then come into play.

The first concerns the identity of the buyer. If you bought your house or apartment alone before the marriage and are the sole borrower, then you will continue to pay the monthly loan installments alone.

Please note: if your ex-spouse made repayments during the marriage, they may (provided they can prove the payments) claim compensation.

However, this situation may change depending on your matrimonial regime. Indeed, if you have opted for universal community, all property and debts, including those acquired and those incurred before the marriage, become common property.

In this case, the judge may decide that the loan must be repaid by both spouses.

This principle prevails for property acquired during marriage if you were married under universal community or under community reduced to acquisitions (without contract).

What's more, if you are a joint borrower. If you married under the separation of property regime and took out the loan together, you become joint owners and continue to repay together.

It is possible to get out by buying out the other party's share. It is also possible to resell the property to repay the loan.

The balance, whether credit or debit, is then shared. It is still possible to offer the property for rental in order to repay the loan.

Finally, it is possible to go from two to one borrower when one of the two spouses wishes to keep the property.

This involves requesting a loan disengagement from the bank, but the bank may refuse this if it considers that the repayment capacity of a single borrower is insufficient.