In our cycle “Money in marriage”, we will devote today to title loans, and more precisely to situations when one of the spouses takes out a title loan without the consent of the other. What are the consequences of such a decision?
Borrowing title loans and credits without the knowledge of the other spouse is not as rare as it may seem. Often spouses secretly lend money, not necessarily to spend on drugs or other purposes that might not please the other party, but also on their own expenses, for example related to hobbies, trips or surprises. However, we must remember that in such a situation, an installment title loan contracted by one of the spouses may also affect the other.
The easiest way with property separation
The situation is the simplest when we deal with so-called asset separation. In order for the separation to occur, it is necessary to conclude an appropriate contract in the form of a notarial deed. The conclusion of a marriage gives rise to a joint property, i.e. the property belongs half to each spouse – when you want to have separation, you have to go to the notary office.
With property separation, the property of the spouses is separate and they are not responsible for their debts. This is the best solution, although it does not suit every spouse and may argue for some people with the idea of marriage.
When a cash title loan or a larger title loan wants to take a spouse with property separation, then the bank or title loan institution only takes into account its income. When the borrower does not repay the debt, the creditor can not claim payment of the debt from the other spouse.
A title loan in the property community without the consent of the spouse
The second situation, which happens much more often, is to take out a title loan or a title loan without the consent of the spouse, when the marriage is in force. Pursuant to article 41 of the Family and Guardianship Code, incurring the obligation without the required consent of the other spouse causes that the creditor, for example a bank, can claim satisfaction only from the property of the person who took the title loan. Therefore, the creditor can withdraw it from the borrower’s salary, but can not take the money belonging to the other spouse.
Therefore, the situation is unlawful when it comes to collecting debt from property belonging to the other spouse. Then you should submit an appropriate letter to the creditor and explain the situation, and if it does not help, you should inform the prosecution.
However, let us remember that there are several situations when borrowing without the spouse’s consent may result in a repayment obligation by each of the spouses.
This applies to the three following situations:
• Money from a title loan or credit has been spent on everyday expenses, for example on food, bills.
• Money is spent to satisfy current everyday affairs, for example as a title loan to buy household appliances.
• The money is spent on activities undertaken by the spouse as a part of a gainful activity, for example they are intended for retrofitting the company.