Life as we travel is not as smooth road as dreamt. Partner who promised to be with you for life long might not like to travel on the same road. The journey going forward, partners might have travel on different roads. Its a tough time emotionally and financially. It is the time to share the asserts that were created during the journey and burden of liabilities accrued to fulfil the dreams for the future.
When you are planning for a divorce , the assert to be in future like home which is backed by present liability of Home Loan has to be carefully planned.
When you have planned to move on, is your home loan on you and your spouse’s name ? Are you a co-applicant for your spouse’s home loan ? Have you planned for a repayment ? Have you thought of an option if your spouse doesn’t pay the EMI ?
It has become very common to name your spouse as a co-applicant in any of the mortgages. The loan can be either personal or a home loan, immaterial, it is always important to deal with your liabilities as you deal with your assets before going for a divorce.
Divorcing your mortgage isn’t an easy task. As long as lenders get the default payment, they don’t care about any issue. So, firstly, let your lender know about your agreement, if you will to keep the home after the divorce. Or if you wish not to be a co-applicant for your spouse anymore.
If you wish to keep the home loan existing and if your spouse doesn’t want to be a co-applicant, then assess your salary and make sure you are eligible for loan on the outstanding loan amount. If you don’t fulfill the lender’s criteria, you need to replace your co-applicant with someone who is eligible and who fulfils the criteria. Till then any bank or any financial institute do not accept for the transfer of your loan.
If you have a good credit history, and if you think you can repay the debt without any co-applicant’s help, refinance your loan, as a sole owner of the property, by transferring to a new bank or any financial institute and start a fresh home loan.
If you wish not to be a co-applicant, let your lender know it. Handover all the divorce details to the lender and get the written information needed. If you have missed doing this, and got divorced. Make sure you do not have a problem in repayment.
How can you solve if you have an issue repaying the loan after divorce.
Due to a recent change in the “Marriage Law’s”, while a couple goes for a divorce, the property earned, before and after marriage, by a husband should be equally shared among wife and husband. So, the immovable property, a house also should be shared equally between husband and wife. So, it all depends on the couple how they share the liabilities before they get divorced.
- Sell the house, repay the loan, and share the remaining amount, if any.
- If you want to retain the house, decide who should pay the EMIs and till when.
What if your spouse doesn’t repay the loan after the divorce. Can you repay?
If your answer is yes to the question, then dare to retain the house.
This is really a big decision in life and you need to be strong during every aspect and solve cleverly. If a wife got enough property from the husband after the divorce, save and make good investments for any future home loan repayment issues. Also, court grants alimony basing on factors like the wife’s employment, lifestyle, parental status. So, instead of blindly having faith on the ex-husband, it is better to save for the unseen issues.
If you are running out of financial help, it is time for you to stay strong and forget your dream home. So, go to the lender, and showcase your divorce details, and withdraw as a co-applicant. This will help you come out of the muddle.
So, before taking the big step in your life, understand and forecast the unseen happenings and plan among your responsibilities, assets as well as liabilities.