Splitting Up Later in Life: Keep the House or Start Again on One Income

After a separation, each former partner can borrow on their own income. Until the joint mortgage is repaid, however, or the bank agrees to release one borrower (a désolidarisation), both remain liable for every instalment. The first job is therefore to decide what happens to the property and the loan, either by selling or through a rachat de soulte, where one spouse buys out the other's share.

Divorces after 50, often called grey divorces, have a financial peculiarity: there are more assets to divide, but less time left to borrow. According to a study by the broker Empruntis, 76% of buyout files involve couples aged 40 and over. The bank then reasons on a single salary, and soon on a single pension.

Joint liability: what still binds you

During marriage, article 220 of the Civil Code makes spouses jointly liable for household debts, but not for loans taken out by one of them alone, except modest sums needed for everyday life. A mortgage signed by both, on the other hand, remains joint after divorce. The judgment may allocate the repayments to one spouse, but that arrangement does not bind the bank.

In practice, if your former spouse stops paying, the bank can claim the full instalments from you, and the incident will be recorded on the FICP (the Banque de France register of repayment incidents) under both names. Only a release accepted by the bank, early repayment when the property is sold, or a new loan taken out by whoever keeps the home ends that joint liability.

Three ways out for the family home

Funding a buyout when you are over 50

The soulte is calculated on the value of the property minus the capital still owed. For a house valued at €170,000 with €70,000 left on the mortgage, the other spouse's net share is around €50,000. The spouse keeping the house must fund that sum and take over the remaining loan, usually through a new mortgage that pays off the old one.

Some brokers steer smaller buyouts, under €75,000, towards a personal loan of up to 12 years and larger amounts towards a mortgage of up to 25 years. The lender asks for the liquidation deed drawn up by the notary and prefers to wait for the final judgment. The partage tax on dividing the property, reduced to 1.1% in a divorce, comes on top of the notary's fees. If you married abroad, or own property in the UK or elsewhere, the notary must first establish which matrimonial regime applies, which can add weeks to the timetable.

The steps, in the right order

1. Have the property valued by two professionals so the figure cannot be disputed.
2. Ask the bank for the outstanding capital and the conditions for a possible release.
3. Simulate your borrowing capacity alone, including maintenance paid or received.
4. See a broker before signing the divorce agreement to confirm the buyout can be financed.
5. Have the notary draw up the liquidation deed, then sign the new loan.
6. Switch borrower insurance if the new loan allows, so the cover fits you alone.

Worked example: Nadia, 52, keeps the family home

Nadia is a nurse earning €2,700 net. She keeps the €170,000 house, owes €50,000 to her former husband and takes over the remaining €70,000 of mortgage. She puts in €30,000 from her share of the couple's savings. Including costs, she borrows €94,000 over 12 years, so the loan ends when she is 64.

At an illustrative 3.4%, the payment is about €800, plus €50 of insurance, 31% of her salary. She receives €250 a month in maintenance for her daughter, who is at university, but the bank ignores it because it will stop before the loan ends. The file stays under the 35% limit set by the HCSF, France's financial stability council.

Frequent mistakes during a separation

• Moving out without arranging who pays the loan: one missed payment lists you both.
• Believing the judgment frees you from the debt: only the bank can release a borrower.
• Taking out consumer loans alone during the proceedings: they complicate the settlement and your future loan application.
• Agreeing a buyout figure without checking it can be financed: once the agreement is signed, it is hard to go back.
• Forgetting the prestation compensatoire (the compensatory payment between spouses): paid as capital, it reduces your deposit; paid as an annuity, it counts as a charge.

Starting over on one income

If the property is sold, each of you can buy again, often something smaller. After 50, a deposit from the sale shortens the term and can keep you within the Lemoine law, which waives the health questionnaire, if the loan ends before 60 and the insured amount stays under €200,000. For tenants, Action Logement's Visale guarantee makes renting easier for some employees.

Private-sector employees in firms with at least ten staff can use Action Logement's free social support service, which deals with separations, carries out a budget review and points to available aid. Banks' L'Appui and Point Passerelle services also step in when a separation throws a budget off balance.

Other ways to fund the transition

Early release of a PEE (company savings plan) is allowed on divorce or dissolution of a PACS when you keep at least one dependent child. For an owner of a second property, a mortgage-backed loan can fund a buyout without relying entirely on salary. And as a last resort, a vente à réméré (sale with a repurchase option) lets you keep living in the home while you raise the funds, at a high cost.

Frequently asked questions

Does the bank have to agree to release me from the loan? No. It agrees if the remaining spouse can repay alone, which amounts to re-examining the file. Otherwise the loan has to be renegotiated or taken over by another lender.

Does maintenance I receive count as income? Some banks count part of it if it is set by a court and will last until the end of the loan. Maintenance you pay is always deducted as a charge.

Can I borrow while the divorce is under way? It is possible but rare, since the bank does not yet know the final division. It prefers to wait for the approved agreement or the final judgment, especially for a buyout.

Does this apply to unmarried or PACS couples? Yes, for a loan signed jointly, liability works the same way. Buying out the other's share follows the same logic, with a notarised deed and suitable financing.