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What happens to my spousal mortgage credit when I get divorced?

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The assets (for example a house) acquired during the marital union are joint assets that must be divided once you divorce. But if the house was mortgaged you might wonder what happens to my spousal mortgage credit when I get divorced?

As part of a marital or livestock company, in Mexico, each spouse is responsible for the debts that were acquired during the marriage. And after the divorce, who is responsible for paying the debts?

It is important to know what happens to my spousal mortgage credit when divorcing

It is important to know what happens to my spousal mortgage credit when divorcing

2 things can happen when there is a mortgage and you get divorced:

  • There is a distribution of goods and a distribution of debts. Common equity is made up of both assets and debts.
  • One of the two decides to keep the house and the implied debt: For this, an agreement will have to be signed where the responsibility of continuing to pay the loan is established.

In both cases, once the divorce is established, the principle to be applied is that the assets and debts be distributed proportionally between each spouse, so that each one disposes to pay the latter with part of the assets of the conjugal partnership.

In case of a separation

In case of a separation

There are several points that must be taken into account when there is divorce and mortgages are involved. To define the way in which the goods will be distributed, several factors must be analyzed such as: The way in which they are married (separate or joint property), the moment in which the goods were purchased (before or after getting married), if bought before getting married you have to verify whether or not the assets were included in the marriage, among some other factors.

However, in Mexico, if the assets are mortgaged, they cannot be divided until they are 100% liquidated.

The financial institution that granted the credit can make an adjustment to the payment plan, or, if the couple agrees, it can be left to a single debtor and creditor.

In any case, it is best to go to the bank that granted the loan to make the necessary adjustments.

What happens if the amount of the assets is not enough to pay off the amount of the debt that each one received?

What happens if the amount of the assets is not enough to pay off the amount of the debt that each one received?

There are two possibilities if the amount of the goods received by each of the spouses is not enough to pay off the amount of the debt assigned to each one:

  • Execute the property to pay the mortgage and distribute the surplus between the spouses.
  • Each spouse will respond with those assets that are outside the common heritage. That is, it will be up to each one to respond with their own goods.

Therefore, if you mortgaged your home and you plan to divorce, in the face of the question of what happens to my conjugal mortgage credit when divorcing me, it is convenient that you make the balance of assets and debts to see if your particular estate will be affected.

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