Debt trap: divorce settlement

The extrajudicial divorce settlement agreement

The extrajudicial divorce settlement agreement

Most of these experts recommend an out-of-court divorce agreement prior to the final divorce. This means that questions about joint home ownership and assets will be clarified before the divorce is due to go to trial. The court date is then only a matter of form, since all important issues have already been settled. The negative financial consequences of divorce cannot be avoided by the divorce agreement, but at least mitigated. They guarantee planning security and, above all, legal security, and rash actions such as the emergency sale of a house can thus be avoided.

What are the financial consequences of a divorce?

What are the financial consequences of a divorce?

The costs for lawyer and court

The fees for the lawyer and the court in divorce proceedings depend on the so-called value in dispute or the procedural value. This depends on the spouse’s income and assets. The value is calculated from the triple monthly net income of both spouses.

simple calculation example :
Net income of the wife 1,500 USD
Net income of the husband 3,500 USD
A total of 5,000 USD

5000 x 3 = 15,000 USD process value

Once the total procedural value has been determined, the court and attorney fees are calculated in accordance with the legal requirements. With a procedural value of 3,000 USD, this is approximately 840 USD, with a procedural value of 40,000 USD, almost 4,000 USD.

Cost of moving and running two households.

As a rule, at least one of the partners leaves the shared house or apartment and will have to run a second household in the future. If both partners have to move out of the common house because one spouse can no longer maintain a larger property alone after the divorce, two moves are due and two new households are established, while the original property is often sold in a hurry and often below value.

Payment of maintenance costs

Maintenance costs for the children and possibly the spouse become due with the divorce.
The “Düsseldorfer table” is used to calculate maintenance, especially child maintenance. It is graded according to the child’s net income and the age of the child. Maintenance payments after a divorce can severely affect your prospects financially over a long period of time.

Common property

Large financial losses can occur if the spouses have acquired common property and both are registered in the land register. In the event of a separation, the property can then be auctioned if no amicable settlement can be reached. This debt trap can be avoided by agreeing the separation of goods. Otherwise, the statutory property regime of the profit community applies. Anyone who signs a marriage contract can record the division of assets such as houses or land in writing.

Common debts

In the case of jointly concluded loan agreements and rental agreements, the creditors, in this case the bank or the landlord, can stick to one of the spouses and demand the total amount from him / her. This is the external legal situation. In the “internal relationship” of the partners, both partners have the obligation to pay the obligations proportionately. If one spouse paid alone, he can demand half of the amount from the other.

What to do if one of the spouses is in debt?

What to do if one of the spouses is in debt?

If one of the spouses is already in debt during the marriage, the other partner should take appropriate measures to protect themselves from over-indebtedness. Because both spouses are only liable for joint debts. For contracts that only one partner has signed, the other partner cannot be held responsible. Incidentally, this also applies if no separation of goods has been agreed.

The following are the most important tips for protecting yourself from obligations in connection with your partner’s debt:

  1. Separate accounts
    If one of the spouses is in debt, it is advisable to keep two separate accounts.
  2. Joint purchases
    The partner who is not to blame should make new purchases and keep the receipts as evidence so that he does not lose his property in the event of foreclosure at the partner.
  3. Be careful with guarantees
    Anyone who guarantees the partner must continue to guarantee and pay after a divorce if the former partner is unable to pay.