Who is liable for joint borrowing?

Those who work together as a couple to obtain a loan may benefit from borrowing advantages because the loan can be granted more easily and on better terms. However, spouses or life partners must also be aware of how liability is regulated in the event of separation or divorce.

Borrowing as a couple can be easier

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Often, two cohabitants opt for a joint expense or purchase to take out a loan . This can be a new car, a big trip or even a real estate loan. Often, when a couple wants to take out a loan, it brings benefits: joint liability often makes the loan easier to approve because the pair collectively offers more collateral than a single borrower. Since the interest rate depends on the credit rating, savings can be made here if the creditworthiness of the two life partners is rated higher together. When borrowing, therefore, both partners must present proof of income and agree to a review of their creditworthine

ss. However, if one of the partners has a poor credit rating, it can have a negative impact. In this case, the couple should check whether it makes sense to borrow together. Incidentally, it makes no difference to the loan agreement whether the two persons are married or live in a household. Basically, even two friends can take a loan together, a marriage-like or kin relationship is not a condition.

How the liability of the life partner is regulated

If the loan agreement is signed together, both partners are liable – even in the event of a separation or divorce. If one of the partners does not settle its part of the debt, the bank can claim the full payment from the other borrower. Thus, a common borrowing is always associated with a certain risk. Even if a couple has taken out a real estate loan together and separates, both partners have to pay the installments – even if one of the partners no longer uses the home.


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However, if only one partner has taken out the loan for a joint purchase, he bears the liability alone – even if the purchase is shared. The payment to the bank is always made also for jointly borrowed loans in a monthly installment of one account. If the installments are borne together, the couple must then settle among themselves who transfers their share to whom.