Separating after 60: buying out the home and starting again alone

Yes, a divorced or separated retiree in France can borrow, notably to buy out a former spouse's share of the home, settle joint loans or find a new place to live. The bank then assesses one pension instead of two, which cuts borrowing capacity sharply and makes the arrangement more delicate.

Separations after 60, often called grey divorces, raise particular money questions. Assets have usually been built up and loans are almost repaid, yet income is frozen. How the house is divided, whether a prestation compensatoire (a lump-sum or periodic payment correcting the imbalance between spouses) is due, and who keeps the loans signed jointly decide what each person can still finance afterwards.

How your file changes once you separate

Until the divorce is pronounced or the agreement lodged with a notary, both spouses remain jointly liable for household debts under article 220 of the French Civil Code. A lender will therefore ask for the final divorce agreement or judgment, plus the état liquidatif (the notary's statement dividing the assets), before lending to either of you. For couples who divorced in the UK, Ireland or the US, the foreign decree and an official translation will be requested, and the French notary still has to draw up the deed dividing any French property.

Worked example: Richard, 68, and his wife received 4,000 euros a month in combined pensions. On his own, Richard receives 2,200 euros. Under the HCSF rule capping mortgage repayments at 35 % of income including insurance, his maximum repayment falls from about 1,400 euros to 770 euros, nearly halving his capacity.

What does buying out your former spouse cost?

The soulte is the sum paid to the departing spouse for their share of the net value of the property. For a house valued at 300,000 euros with 30,000 euros still owed, held in equal shares, it amounts to 135,000 euros. On top of that comes the droit de partage (the tax on dividing jointly owned property), reduced to 1.1 % for divisions following a divorce or the end of a PACS (French civil partnership), plus the notary's fees.

A realistic financing plan for Richard

Richard holds 90,000 euros in an assurance-vie (French life-insurance savings) and owes no compensatory payment. He needs about 170,000 euros: the 135,000-euro soulte, 30,000 euros to clear the joint mortgage and roughly 5,000 euros of tax and fees. He contributes 90,000 euros from savings and borrows 80,000 euros over 12 years. At an assumed rate of 3.5 %, the repayment before insurance is about 681 euros, inside his 770-euro limit.

Insurance: the point to watch

At 68, death cover is usually still available, but disability guarantees no longer are. An external policy, taken out through a délégation d'assurance, often costs less than the bank's group contract after 65. The full cost must stay below the usury ceiling of 4.68 % that applies to fixed-rate home loans of 10 to 20 years.

Three financing scenarios depending on your situation

Getting released from joint loans

A divorce judgment does not release former spouses from their obligations to the bank. If one stops paying, the other can be pursued for the full amount. A désolidarisation (release from joint liability) requires the lender's written agreement, and the lender checks that the remaining borrower can carry the repayments alone. Otherwise, repaying the joint loan with a new individual loan settles the issue for good.

Consolidation as a dividing tool

A broker can roll the joint credits one spouse keeps into a single loan, possibly including the soulte. The repayment falls because the term is longer, but the total cost rises. For a retiree, the term must end at an age the insurer accepts, often around 85 for an unsecured loan.

And the compensatory payment?

The spouse who owes a prestation compensatoire as a lump sum can fund it with a personal or secured loan. The one receiving it gains a valuable deposit for rehousing. Either way, the bank will require the approved agreement or the judgment setting the amount and timetable.

Frequent refusals and how to avoid them

The most common reason for refusal is missing final documents: no bank funds a buy-out on the strength of a draft agreement. Align the bank timetable with the notary's and obtain an agreement in principle before the division deed is signed.

The second reason is a debt calculation still based on two pensions when the couple has already separated. Present only your own income from the outset, distinguishing basic and supplementary pensions, and listing any UK or US pension separately with its award letter. The third is an overdraft that appeared during the proceedings, common when living costs double. Clear it before applying.

Steps to finance your post-divorce plans

1. Have the home valued by a notary or two estate agents so the soulte cannot be challenged.
2. List the joint loans and ask each lender for an early-repayment statement.
3. Calculate your capacity on your own net pension, insurance included.
4. Compare a bank offer with a broker's offer, using an external insurance policy.
5. Obtain an agreement in principle before the division deed is signed.
6. Have the release or repayment of joint loans recorded in the notary's deed.

Rebuilding a one-pension budget

Fixed costs do not halve: property tax, home insurance and energy stay close to their previous level. Financial education associations run free workshops to rebuild a budget, and pension funds can give one-off help to a pensioner left fragile by a divorce.

Thinking about a future survivor's pension

A divorced former spouse keeps a right to a survivor's pension under the general scheme, shared in proportion to the length of each marriage. Under Agirc-Arrco, that right disappears on remarriage. None of this enters today's bank calculation, but it weighs on long-term financial security.

Alternatives if the bank says no

If the buy-out is refused, selling the property and sharing the proceeds is often the best option: each of you leaves with a deposit and can buy something smaller, sometimes without a loan. Staying in indivision (joint ownership) for a while under a written agreement also allows the decision to be postponed until financing becomes possible.

For a modest need, such as furnishing a new flat, an ordinary personal loan or charity-supported microcredit is a better fit than revolving credit. A pawn loan from a Crédit municipal, finally, provides emergency cash with no income condition, against a piece of jewellery or another valuable.

Your questions

Can I buy out my former spouse at 72? Yes, if your pension supports a short term, often 8 to 12 years, and an insurer will cover you. A large personal contribution or a mortgage charge makes approval easier.

Does the bank count a compensatory payment received as an annuity? A lifetime annuity set by a court can be counted as income, though some lenders discount it. A lump sum received is more reliably used as a deposit.

My former spouse refuses to sell. What can I do? A judge can order a court-supervised division and, failing agreement, a sale of the property by auction. Family mediation is usually quicker and cheaper.

Does ending a PACS follow the same rules? The 1.1 % division tax also applies, but there is neither compensatory payment nor survivor's pension between former PACS partners.