Real Estate Loan in Divorce

Many couples invest in a shared home after a wedding and take out a real estate loan. Of course, the newly in love at this moment assume that their love will last forever. However, this hope is not a reality. Around 1/3 of all Germans can divorce after a maximum of ten years.

If a home was financed, there is not just a lot of paperwork. There is also the question of who will repay the loan and whether you can keep your own four walls. The second aspect also goes hand in hand with the question of the extent to which the ex-partner can be paid out or whether the home must be sold to repay the property loan.

Who is liable for a joint real estate loan?

Who is liable for a joint real estate loan?

Especially in the divorce period, paying the loan rate of a joint real estate loan is not an easy thing. Of course, as long as no arrangements have been made, both partners no longer want to pay for joint debts. For this reason, it is not uncommon for a judge to have to make the decision.

There is sometimes no uniform regulation of who has to pay for a joint real estate loan in the event of a divorce. The courts decide this question on a case-by-case basis and after considering the financial situation individually. The following factors play a role for the court:

  • What is the income situation of the parties?
  • Who has repaid the loan installments so far?
  • Who is in the land register?

The land register entry, in particular, provides information about who owns the property and is therefore also liable to pay. If, however, both spouses are owners, the court carries out a comparison.

The two parties effectively pay their shares in a joint real estate loan after a judgment based on a fair amount or based on the amount of income. In order to find a fair solution, it is, therefore, advisable to draw up a contract between the spouses.

Payment of the partner


For example, the contract can not only regulate how high the share of the loan rate of both partners is but also the amount that has already been repaid. This aspect becomes interesting when divorcing and moving out of a spouse. As a rule, the party living in the property must pay the other party.

Thus, the person living in the financed home is not only obliged to pay the loan installments but also sees himself in the dilemma of taking out another loan for the payment.

Double payment debit


The repayment of a real estate loan and the loan rate from debt to pay off the former partner represent a double burden. In order to keep the costs as cheap as possible, rescheduling may be considered. In any case, further funding is usually required. A credit comparison is recommended in both cases.

As a result, you benefit from the lowest possible interest rates and can thus minimize the credit rates. In order not only to benefit from low-interest rates but also to find a trustworthy lender, it is advisable to read test reports from previous customers:

  • Borrowers, for example, reported that Good Finance had satisfactory customer service and that the advice provided to the customer service agent went well.
  • E-Money is also characterized by great customer reviews. On average, the financial service provider received 4.8 out of 5 stars. Borrowers are particularly enthusiastic about the quick processing of loan applications.

With us, too, you can access the cheap loan offers from providers such as E-Money or Good Finance if you need financing, such as taking out a real estate loan or a financing sum to pay out your former spouse.

We clearly present the cheapest loan providers to you within a few seconds and simplify the way out of your predicament.

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