What happens to your money after the divorce?
The distribution of assets is what usually generates more debate between the spouses in the case of contentious divorce, that is, without an agreement.
Next, we are going to explain in detail what happens more frequently and what the still married couple can do with each of the financial products they have contracted.
What happens to the savings (accounts and deposits) after the divorce?
The money will be distributed according to the matrimonial regime you have. Next, we explain each case more specifically, but taking into account that each marriage and circumstances are different, it may vary.
Marriage with separation of property.
In this situation, as can be deduced from its name, the owner of each financial product is the one who will keep the money from it. But if you find yourself in the situation where there is a joint account or deposit, the money from it will be allocated 50% for each one.
Marriage in a community property regime.
In this type of regime, in general, the existing funds in the bank accounts will be distributed at 50% without taking into account who / is the holders thereof.
In the case of community property, the regime is much more complex, so many more factors must be taken into account.
What happens if one of you uses the funds from a shared account?
If we find ourselves in the situation where one of the spouses uses money from a bank account that they have in common,
If one of the two uses part of the money in a joint bank account as a community property once the couple has already separated and has started the divorce process, they must show that the purpose was to promote the marital partnership. Otherwise, when the goods are distributed, the funds that have been used will be discounted.
What options are there to manage a loan when the couple dissolves?
Applying for a loan as a couple is common, since the chances of it being granted increase when there are two holders in the contract. However, the divorce of a couple with partial debts is complicated. If both of you have the responsibility to pay the loan payments while you have lived together as a couple, this obligation is not eliminated with the divorce.
1st The simplest option is to share the payment of the fees. To do this, it would be enough to leave a checking account in which both appear as holders and enter the monthly amount in it. However, this option is not optimal for all ex-partners, since for it to occur, the breakup should be friendly or, at the very least, cordial.
2nd If one of the two people keeps the property that has been acquired with the loan capital, it can be negotiated so that only this person takes charge of paying the monthly payments and keeps the property. However, it would be necessary to ensure that this would be done, because, otherwise, the bank would have the right to claim the fee from the other holder.
3rd Modify the ownership of the loan and include only one of the spouses. In this way, the other would be free of debt. However, we already warn that not all financial institutions allow this option, because it means losing a holder or what is the same, losing a payment guarantee.
4th Completely cancel the loan. Logically, this is the optimal option for both, since the debt would cease to exist. The problem is that it can hardly be carried out, since for that the necessary funds will be needed to repay the loan in advance. One solution they can opt for is to sell that asset and with the money from the transaction pay off the debt.
What happens if one of the two stops paying the fees?
If after the dissolution of the couple the payment of the loan is still shared, but one of the two stops contributing its part, the other will also be affected. In case this happens, it is best that the debt installments continue to be paid normally and, later, go to court to claim the part that the ex-partner had stopped paying.