Wedding loan – when does the other become a debt?

A loan decision is often an individual’s decision as to whether to borrow and what to buy for the money borrowed. But once an individual is married or in a registered partnership, he no longer decides alone. He also owes the other person a loan, even if he doesn’t even tell him about it…

The text does not cover all possible situations. The final decision always rests with the court. Take the information in this article as an overview of how it is generally with marriage debts in our country. For example, the bailiff’s online advice center can answer specific questions.

Are you getting married with a loan? Only “yours” remains and you guarantee it with your half SJM

Once you get married with a loan, it’s yours alone. Your better half has nothing to do with debt. Just as he will not own what you owned before you got married. But beware – during the marriage you create SJM (common property of the spouses). If you stop paying and the debt is collected, will also be satisfied with your ideal half of SJM.

The agreement reached on the shrinking of the SJM will not change anything (if you conclude it only after taking out the loan). In short, the SJM cannot be excluded from a possible execution. So, if you incur a marriage debt, the partner must take it into account everything you buy will be burdened with debt (even if it’s only half). This includes real estate. What’s with that?

A partial solutionit is up to the partner to enter into marriage with his property. And only build SJM after paying off your current debt. Alternatively, agree in advance to reduce the SJM, then take out a loan, and only then take out a marriage. However, the question remains whether you will get a loan with a shrunken SJM (this reduces creditworthiness, of course).

You borrow during the marriage and you do not have an agreement to reduce the SJM. Then the debt is not only yours, but also that of your spouse, even if he is not aware of the loan at all

Once you are in debt during marriage, you are also in debt to your partner. Even if you don’t agree to the loan and he doesn’t know about it at all, it’s also not in the loan agreement. The debt relates to the entire common property of the spouses, that is to say not only to the property itself but also to the income of the other spouse. Thus, even his income may be subject to execution. Really.

If both spouses have consented to the loan (one has borrowed with the consent of the other), there is no way to escape this debt. That is, except for a divorce that breaks SJM. The (former) debtor spouse is then only responsible for repaying the loan up to the amount of his own property, which is already settled after the divorce proceedings. But it’s on a long bend, and he doesn’t have to…

However, as soon as it turns out that the other lending spouse he didn’t know, so he couldn’t even agree with her (there is only one signature for the loan), in short, the other spouse was not involved in the loan negotiations (the creditor must keep a record of the negotiations), the “non-debtor spouse” can quite easy and quick to defend. How? ‘Or’ What?

By a written declaration of disagreement with the loan, addressed to the creditor, sent by registered mail, even better by letterbox. By expressing his disagreement with the loan, the other spouse arranges so that the debt only applies to the first of them. But always his half SJM, there is no exception. The second spouse thus protects himself from foreclosure and saves half of the SJM. Divorce would be a solution, of course, but the steps necessary to initiate divorce proceedings will take much longer.

You borrow during your marriage, and before settling the loan, you had a restricted SJM (prenuptial agreement)

An agreement to restrict MJS can be made both before marriage and even during marriage. Once closed, it should be stored in the form at the right time public acts. Therefore, it is concluded with a notary. Creditors are required to familiarize themselves with public documents before entering into a loan agreement with the client. Whether they do so or not is their sole responsibility.

As soon as the claim is collected, if it turns out that the SJM has been reduced before the loan was taken out, the execution can only relate to the part of the SJM which contractually belongs to the debtor (mandatory) partner. If such a debtor has only his own income and everything else belongs to the other in the marriage, the creditor is quite “registered”. However, it is his decision that the public documents on the shrinkage of the SJM did not pass…

Let’s sum it up…

The debt contracted before the marriage remains the debt of the sole spouse who contracted the loan. But this also applies to the common property of the spouses, resp. to the ideal half of the indebted partner. Conclude a loan agreement up to during marriage binds both spouses, even if the other may not even know it. But as soon as he learns of the default, he can express his disagreement with this loan in writing as soon as possible, thus exempting not only his half of the SJM, but also his savings, his investments or his regular income.

Once the loan has been concluded during the marriage in which it was previously agreed to reduce the joint assets of the spouses, the debt again only applies to the spouse who takes out the loan, plus their property. The other spouse is automatically excluded from the loan and from the obligation to repay the debt (unless he is not a co-borrower in the loan contract).

You might be interested in the comparison of insolvency and enforcement, where we will show you not only how they differ from each other and what they have in common, but also for which solutions of over-indebtedness is the most advantageous.

Lenka Rutteova

Lenka focuses on projects in the area of ​​financial literacy support, particularly in personal finance. The subjects he deals with are mainly credits, savings, banking, collective investments or insurance, in short, everything in which the average citizen should be able to (financially) orient himself. During her doctorate at EkF VŠB-TU Ostrava and after obtaining it, she worked as an assistant professor in the same faculty, after maternity leave she is already fully engaged in writing texts, mainly in the field of finance. You’ll find it in magazines focused on financial literacy, such as Hyperfinance.cz.

Bezvafinance sro

Bezvafinance sro is an independent online consumer credit intermediary licensed by the Czech National Bank, but it also focuses on other personal finance – be it loan, mortgage, savings or insurance. The company’s goal is to provide users with the ability to easily, quickly and online compare offers from the world of personal finance. One of the fundamental pillars of the company is the education of the general public in the field of personal finance and the improvement of financial literacy.

More information at https://www.bezvafinance.cz/.

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