What about the mortgage in the event of a divorce?

Divorces have become more and more common in recent years. The covid situation has also led to an increase in the number of couples ending their marriage. What about, when someone is in the middle of a divorce, before applying for his or her mortgage?

The rule on this is pretty clear. As long as the divorce has not been pronounced by the court, the matrimonial regime remains in force. In other words, one must be legally separated from before any person alone and legally can apply for a mortgage.

Due to the sensitivity of such situations, we must also be able to provide credit institutions with the necessary evidence. In most cases, we are talking about the 'Divorce by Consent Agreement' - also called EOT. It may happen that the consent of the other partner is requested or that the latter must nevertheless sign for information.

And what about the current family home? You can choose to sell it. It is important that an estimator is used to determine the value of the home. This value is determined depending on the marriage system and the personal contribution. Also in the event of a buyout of an ex-partner, it is recommended that an estimator determines the value of the home in order to calculate the buyout value. That balance will then be deducted from the loan.

A most recent case is to keep the house in undivided ownership. This means that the property will not be sold because this is a more advantageous decision at that time; because one of the partners is unemployed or to spare the children, for example. It is recommended that this is done in mutual consultation by means of proper agreements.

Want to know more about a mortgage loan and divorce? Contact us!

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