Property separation – what about credit

Property separation is an agreement concluded in the form of a notarial deed, which stipulates that the property of each of the spouses is only his property. This applies to both the assets it holds before the conclusion of the contract and after its signing. This applies to situations when property separation is concluded prior to the marriage.

It is also possible to sign property separation already during the marriage. At that time, the joint property is divided and from the moment the contract is concluded, each of the spouses has their own property and owns it.

Property separation with the alignment of achievements

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This type of property separation during marriage is no different from what we described above. Separation of property and alignment of property becomes important at the time of divorce. At this point, the spouse whose assets are smaller may demand a second compensation. This is especially important if one of the spouses is not gainfully employed and takes care of the household. Most often, such a decision is made jointly. We divorce not because it is good and at this moment everyone thinks primarily about themselves. In such a situation, a person who devoted himself to work at home, and benefited by both parties, after divorce will not be left with nothing, despite the fact that he did not earn.

Property separation – what about credit

credit problem

However, how does property separation affect a loan? Same as our assets, which we have on our account before marriage. It is the same for our liabilities, including loans. Those contracted before marriage are only our commitment.

If, upon the conclusion of the marriage, we do not decide on property separation, a property community is created. From that moment, each loan equally charges both spouses. What’s more, to get a bank loan, both parties’ consent is needed.

If we decide on property separation, each of us has our own assets and liabilities, including a loan. We can take out a loan, the payment of which is borne only by us. We do not need the consent of the other spouse to conclude a loan agreement with the bank. Moreover, the other party has no influence on our decisions, because they will not be charged with repayment at all.

Property separation does not mean, however, that we cannot take out a loan together. Then, however, we are treated more as partners. In addition, we can establish a different division of responsibility. With a community of property, we will be equally burdened by the obligation. When separating property, we determine ourselves to what extent is responsible for the loan.