Joint Credit and Divorce in Estonia: Important Information You Need to Know!

Solving the housing issue as a couple: Buying a house on credit together increases the chances of getting better housing. But when dividing property after a divorce, it is important to consider everything. There is no shame in changing the terms of the loan, bankers often deal with this. The advice of a specialist can open up unexpected solutions.

The most important thing in a divorce is to agree on the division of property. It is necessary to decide whether the spouses will sell the shared housing or if someone will continue to live in it. When selling, it is enough to divide the money, and if the housing remains, the conditions should be discussed.

Often, the owner of the living space remains in it after the division of property, but the bank must check if he is capable of paying the loan on his own for the transfer. If finances allow, it is possible to transfer the debt to the remaining person. Specialists consider this rational, as, for example, with the consent of the parties after refinancing.

When both parties are involved in loan repayment, a solution will still be found. For example, when one party wants to take on the payments, it is possible to obtain a new loan to purchase the other party's share. This is a common method if direct loan transfer is not possible.

If the borrower is able to repay the loan, an agreement will be reached quickly. With low solvency and a desire to keep the property, it is necessary to discuss new conditions with the bank. Otherwise, you will have to say goodbye to the real estate. Before changing the loan conditions, it is necessary to study all options and costs, including notarial services.