Introduction
Generally, debts incur during the marriage as considered marital debts, both spouse equally liable to pay loan. Partner can be force to pay loans after divorce if their name is on the loan agreement. Often, the person whose name is on the debt takes responsibility. If partner separated so the laws says that all the family property and family debt have to be divided in equally between the partner, unless not make a different agreement. If one partner take loan before marriage then other partner not liable to pay loan after divorce. If one partner take loan during the marital relationship after divorce both partner are lible to pay loan.
Legal Provision on Loan Liability Post-Divorce
- Joint Liability on Loans- When both spouse have jointly taken loan (home loan, personal loan, or credit card loan) both are equally liable pay the loan amount. Divorce never alter this contractual liability.
- Divorce Decree and Loan Agreement- The court pass divorce decree may allocate responsibility for loan repayment between partner based on fairness, income, and usage of loan asset.
- Enforcement by Banks- If one partner stop paying, the lender can pursue the other partner for entire loan amount. This is happen because the loan contract is the separate legal obligation from the marital relationship.
- Legal precedents- Indian court held that loan liability is independent of marital status. For example, in case where the one partner continued to reside in the loan or mortgaged property, courts have order to the partner the loan amount repayment, the lender have right to recover the full amount.
What’s Partner Debt’s?
Partner debt includes all debts spouse on during the relationship. This includes:
- Mortgages
- Loans from family members
- Bank lines or credit
- Credit card
- Repair cost
Case Laws
- S.Thirugnana Johnson vs. J.Princy Linnet Dorathy (Madras High Court)
- Rajnesh vs. Neha and Ors. (Supreme Court of India)
Conclusion
When partner takes loan in jointly then both are the liable to pay loan after divorce. Divorce is involves in just dividing assets, debt id equally important to consider. During relationship partners enter into any contractual agreement for take loan partners are liable to pay the loan after divorce. The common example mortgage, home loan, card loan, and personal loan.
FAQs
- If one partner take loan before marriage after divorce both partner are liable to pay the debt.
NO, both the partner not liable, only one partner liable who can take loan.
- In marriage relationship the partners take home loans after divorce both the partners are liable to pay loan.
YES, after marriage take loans both the partners are liable to pay loan after divorce.
- What happen to a joint mortgage after divorce.
If both the partners name on the mortgage so then both the partners are liable to pay loan equally after divorce.
- How to debt typically divided in a divorce.
After divorce both the partners are equally pay for loan or debt.
- If one partner take loan for marriage after divorce both partner are liable to pay the debt.
No, only one partner pay loan who take loan for marriage.
