Legislation in Latvia provides for joint ownership of spouses, similar to that in other countries. In cases where a marriage contract is not concluded before or during the marriage, everything jointly acquired and used is the joint property of the married couple. Just as the young couple promises to be together both in joys and in sorrows, it is worth mentioning here - debts are also usually considered joint property.

What credit obligations do spouses most often undertake?

Of course, the most common type of credit that a young family takes on, , is a mortgage loan . This is related both to the relatively high value of the property and to the goals of building a family and living together. One of the spouses becomes the borrower of the mortgage loan, the other - the guarantor. Most other loans these days do not involve a guarantor (unless the lender has bad credit and solvency). This means that the borrower is technically one person. However, other types of loans, such as car loan or consumer loan , which are officially borrowed by only one of the spouses, are actually the joint responsibility of both spouses, as they are considered joint property.

How to evaluate joint credit obligations?

Joint commitments should not be avoided, it is definitely worth doing for the realization of common goals. Often, without a guarantor, the loan is not available at all. Like marriage, co-commitment should be a conscious and deliberate step. It is recommended to consider both the marriage contract and the entry in the Land Registry - registering both spouses as home owners.

Despite the statistics and the reality of life, joint commitments should not be avoided, it is definitely worth doing for the realization of common goals. Often, without a guarantor, the loan is not available at all. Like marriage, co-commitment should be a conscious and deliberate step. It is recommended to consider both the marriage contract and the Land Registry entry - registering both spouses as home owners.

What to discuss at the beginning?

It is important for everyone in the family to discuss several life scenarios before taking any loan. Assessing such a conversation as a lack of love or showing disrespect is wrong. On the contrary, the ability to organize such dialogues in the family shows the couple's high level of financial literacy and long-term thinking. Questions to be discussed :

1. How will the loan be paid off if someone from the family loses their job?
2. Will the possibility of loan repayment be affected by the birth of a baby?
3. Do the spouses have savings that will be able to help in unexpected difficulties?
4. Who owns the ownership if one day the mutual relationship is broken?
5. Marriage contract, so that incidents do not have to be resolved through the court.

The more detailed all risks are evaluated, the more successful and carefree families promise to be!

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How can Sortter help?

Sortter certainly can't help you with married life, but it can help you save by finding the best loan option and educating you on mortgage and family housing . For example, if a family wants to get a mortgage loan, then the report shows the final total amount of the loan and the repayment period.

you can compare all this in one place for free and without leaving your home!

Article author: SORTTER

Photo: NATALIE MICHELLE PHOTO , LAUREN APEL PHOTO

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