Wedding is an important event in life, which means starting a new, common stage. Getting married involves the acquisition of new privileges but also obligations. First of all, young marriages need additional funds to fulfill their dream of a new home and organization of a shared life. In this respect, many legal doubts arise regarding the property and mortgage . What should you know about finances before marriage?
Joint loan for a home before marriage
Many people decide to live together long before they get married. However, due to marital status, the bride and groom are two separate units, where each is responsible for each other. Living together, fees, sharing income is not enough to be able to conclude legal agreements together. The decision on a joint loan for an apartment before the wedding is an important declaration, but difficult to implement. For banks granting mortgage loans , legal status counts, so until engaged couples legalize their relationship, they are treated as two separate entities, even if they live and live together. A joint loan for a home before marriage is possible, but it will only be granted to one person. However, there is a solution that allows you to apply for a mortgage while you are still engaged.
Pre-wedding loan on a different basis
Bride and groom have a difficult task when it comes to entering into joint property obligations, even before entering into marriage. However, a loan before marriage is possible in the case of purchasing real estate in shares, in which case the bank may decide to grant a joint loan. Such a solution is complicated and involves the necessity of completing many formalities, but it is the best solution for persons accumulating joint property. In the event of a split, both parties are still required to repay the mortgage and keep the joint ownership of the purchased apartment until one party repays the other. It should be remembered, however, that even repayment of part of the property is not synonymous with the fact that the loan before entering into marriage is transferred to only one person. In the absence of sufficient creditworthiness, the bank may decide that the obligation must continue to be repaid by both borrowers with whom the contract has been concluded.
Donation before marriage
There are also situations that one of the parties acquired the right to real estate as a donation. The bride and groom often live together and keep the house together. Donation before marriage , regardless of what it concerns, is included in the personal property. Therefore, even after marriage, she is not covered by a property community, therefore she is legally owned by one of the spouses. During the marriage, however, the property owner can change the notary deed and add his spouse to him, thus making him a co-owner of the apartment. If this has not happened, in the event of divorce, the gift before marriage is not part of the division of property.
Debts incurred before marriage – who do they belong to?
Marriage is not only a dream come true for a shared home, but also a big responsibility. Many people are afraid of debts incurred before the wedding and the need to pay them later. In fact, the debts of the husband or wife and any unpaid obligations acquired before the wedding belong only to personal property. This means that the spouse who is not affected by this debt will not be responsible for him. The problem, however, is that at the time of bailiff’s enforcement, the debtor’s income will be charged. This can worsen the common financial situation, as part of one salary will be charged for the repayment of creditors. When this is insufficient, a case may be brought about the division of property. Then, from the half belonging to the debtor, creditors will be able to obtain repayment of the debt. This adversely affects your creditworthiness and prevents you from getting a joint loan, and can also lead to a loss of financial liquidity.
Financial matters of marriage
Life writes different scenarios, that’s why there are situations when it comes to divorce decisions. It is a difficult time for both spouses and often means a court battle for the division of property. It is worth remembering that the donation before marriage is not taken into account when divorcing and belongs to the spouse’s personal property. It is different in the case of a joint loan for a house before the wedding , which was granted to both parties. Then the decision to disconnect one of the borrowers depends on the bank and the results of the court proceedings. Each situation is analyzed individually, which is why the division of property can have a different course. When a marriage has signed property separation , each party has the sole right to personal capital accumulated over the duration of the marriage.