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Credit and Divorce: What Happens After Separation?

Following a recent divorce, you are wondering what will happen to the private loan contracted while you were still married or married? Can banks require you to pay monthly payments and if so, to what extent? Our explanations and advice.

A more common situation than it seems

A more common situation than it seems

It’s a fact, divorces are more and more common in Switzerland. The latest statistics (2016) show that more than 40% of marriages end in divorce! Knowing that many households incur at one time a debt linked to a consumer credit, the case where a divorced couple ends up with a loan to repay is less rare than it seems.

Who should repay the credit?

credit loan

In this kind of situation, the legal obligation to finish paying the monthly payments will then fall to the person who signed the contract. Indeed, in the case of a consumer credit contract, only one person signs the said contract, even if the income of the two spouses is examined. It is this person who will have to repay the loan in the event of separation or divorce.

If you have not signed the contract …

credit signed

If you are not the person signing the contract, the bank cannot in any case require you to repay the loan: it is simply not your responsibility. In the event of non-reimbursem then, it is your ex-spouse who is exposed to the various problems which may follow: reminders, lawsuits, ZEK codes, etc.

If you signed the contract …

divorce loan

In this case, it is up to you to repay the rest of the amount related to the loan, this even if the money obtained at the conclusion of the contract was mainly used for your ex-spouse. The only exception concerns the use of the amount obtained for the good of the family.

Beware of exceptions

If it is that the loan amount was used for the good of the family, then the two ex-spouses must repay the credit. Only a judgment of the court can then be authentic in this kind of situation. For example, the case arises if the credit was used for the purchase of a vehicle, renovation of a house, etc.

What to do if in doubt?

If you obtained your credit through a specialized agency like Goodlink Credit, which offers credits to married couples, you can contact them to explain your situation and find out the procedures to follow. If necessary, you can also contact your lawyer if you have the possibility.