Loans for married couples: who is liable and why it's worth taking out a joint loan

Would you like to take out a loan with your spouse and don't yet know who is liable and whether it is worth applying for a loan together? Then you've come to the right place: we explain everything you need to know about loans for married couples.

Who is liable for the loan if one spouse gets into debt? What role does the spouse play when taking out a loan? Depending on what you want to take out a personal loan for, it makes more or less sense to apply for the loan for both spouses.

In the following sections, we explain the advantages and disadvantages of a loan for married couples.

Credit for couples who are married

If you would like to take out a loan together with your spouse and fulfil the bank's requirements, you do not need to provide any information about your spouse. If the loan amount you apply for also corresponds to your credit budget, which the bank determines, nothing stands in the way of a loan approval.

Would you like to calculate your credit limit? Then our budget calculator will help you: Calculate your possible credit limit here - regardless of whether you want to take out the loan alone or as a couple.

However, banks will still ask for information from your spouse when you apply for a loan. This is done in order to involve the spouse in the event of the applicant's inability to pay. If the banks determine that the spouse's financial situation is not sufficient for the personal loan (= lack of creditworthiness), they can reject the loan application. Even if the applicant is creditworthy and has a good credit rating.

Also read this article on creditworthiness and credit rating adjustment to avoid your loan application being rejected. Regardless of whether you apply for the loan alone or with your partner.

When the partner is liable for the loan and when not

The partner is jointly liable for the loan if the loan was taken out in the interests of all members of the household. For example, this could be a personal loan for the family car or the purchase of a new bedroom for the children.

However, the partner is not liable if the applicant for the loan uses the personal loan to finance an expensive hobby or buy expensive brand-name clothes. In this case, only the borrower is liable within the framework of the ordinary matrimonial property regime of joint ownership or separation of property. Both partners are responsible for their assets and are solely entitled to them. Accordingly, only the borrower is responsible for repaying the monthly instalment.

However, if both partners have consensually agreed to the loan agreement and both have signed it, both partners are jointly and severally liable as borrowers. In addition, banks require the joint liability of the spouse as an additional guarantee before taking out a loan. Securing the loan.

In the event of separation or divorce, the person who took out the loan is liable, not the divorced spouse. Unless the loan was taken out by both spouses.

What if one partner dies?

When a spouse dies, the question often arises as to whether the surviving partner has to pay for the deceased partner's loan. As a rule, both assets and debts are part of the inheritance. This also applies to loans. But only if both partners have jointly signed the loan agreement as borrowers and the surviving partner is categorised as a genuine borrower.

In such a situation, there is joint liability for the loan. Finally, both persons have a genuine interest in the loan. This is the case, for example, if both spouses have taken out a mortgage for the joint home.

And what happens if the partners are not married?

Couples who are not married can still apply for a loan together. However, this is only possible with selected banks and only as budget optimisation. The advantage of this is that the two partners share the monthly expenses, which means that the loan amount can be larger.

And if the financial situation of the second partner is also good, this not only increases the chances of a positive credit decision, but also of better interest rates and conditions for the loan for two. After all, you have two incomes and shared costs. This allows you to increase your loan amount and, depending on the bank, benefit from even better interest rates and conditions.

Joint borrowing can therefore make perfect sense for a couple. The following also applies here: only if both partners have signed the loan agreement are both liable for it.

Check creditworthiness? Find a suitable bank? Set the right loan amount in CHF and term?

We will be happy to clarify these and all other questions directly with you: As independent credit brokers, we help you to check and increase your chances of obtaining a loan. In doing so, we not only look at your income, but also at how good your credit rating is.

At the same time, we advise you when it comes to finding the right bank or determining the loan amount in CHF and the right term. Before taking out a loan, we carry out a loan comparison or interest rate comparison. Click on the two links and find out how high the interest rates in CHF are for your planned loan amount.

If you have any further questions, please do not hesitate to call us: +41 44 244 34 00.