When a relationship ends, shared accounts, loans and contracts often remain open. Anyone who wants to split the debts must first clarify who is liable towards the bank and what share each partner bears in their relationship with the other. This guide separates these two levels and sets out the steps that tend to work.
Short answer: Joint debts remain owed to the bank after a separation at first. Between the partners, section 426(1) BGB (in German) divides the burden in equal shares, unless they agree otherwise. A real split therefore needs a written agreement and, as a rule, the consent of the bank if a contract is to be transferred to one person alone.
The most important points at a glance
- A separation initially changes nothing in contracts that are in both names.
- Towards the creditor, the bank can claim from either partner, regardless of the internal arrangement.
- Internally the statutory division applies, as long as you have agreed nothing else.
- A change of contract almost always needs the consent of the bank or the provider.
- A written list of all contracts with a cut-off date prevents most disputes.
Does a separation already split the debts?
No. A separation is legally not the same as a divorce, and it does not change contracts automatically. A joint instalment loan therefore stays in both names until an agreement and, if needed, a transfer is made. Standing orders and direct debits also continue until someone changes them. Anyone who does nothing often keeps paying the other partner’s debts.
The same applies to contracts that are in one name only but shared in practice. Anyone who uses the other person’s account or contract for shared expenses should record who took over which payments. A divorce follows its own rules, described in Divorce and finances: what young couples should know beforehand (in German).
How does the law divide the burden between partners?
When several people are liable for the same debt, the law in the German Civil Code governs the settlement between them. Under section 426(1) first sentence BGB (in German), each joint debtor owes the other an equal share, unless something else is determined. The settlement therefore does not depend on who signed the contracts, but on who actually made the payments.
Assumption: A joint remaining debt amounts to 12,000 euros. Partner A has paid 9,000 euros so far, partner B 3,000 euros. With equal shares, each bears 6,000 euros. A has therefore paid 3,000 euros more than their share, and B 3,000 euros less. Internally, A can therefore claim 3,000 euros from B, unless something else has been agreed.
Which contracts are typically affected?
Not every joint obligation looks the same. The overview below helps sort the contracts before you negotiate shares. It does not replace a check of the specific contract terms.
| Contract | Typical question | What to clarify |
|---|---|---|
| Joint instalment loan | Who pays the remaining balance? | Transfer or termination, consent of the bank |
| Joint current account | Which payments continue? | Standing orders, direct debits, account holder |
| Credit card with an extra card | Who is liable for transactions? | Blocking the extra card, termination |
| Rental agreement | Who stays in the flat? | Arrangement with the landlord, liability under the tenancy |
| Mobile or insurance contract | Who takes over the contract? | Change of contract holder with the provider |
For contracts with third parties, the contracting party decides whether it accepts a change. The bank or provider checks the creditworthiness of the remaining partner, and this step can fail. It is therefore worth seeking talks early and having the documents ready.
Which steps help with the split?
- Inventory: list all loans, accounts, cards, contracts and standing orders with the outstanding balance and monthly rate.
- Set a cut-off date from which the split applies, and document payments made before it separately.
- Record the agreement in writing and have both partners sign it.
- Inform the bank or provider and request the transfer or termination.
- Switch standing orders and direct debits once the new responsibilities are settled.
The cut-off date is decisive, because later disputes often revolve around payments made during the transition. If you keep paying instalments on the joint loan after the separation, record each payment with its purpose. This makes the settlement easier to prove later.
What happens if one partner does not pay?
The bank can claim the full amount from either of the two partners, regardless of who caused the debt. The internal arrangement only applies between the partners. If one does not pay, the other remains liable towards the bank, even though they can claim a settlement. A dunning procedure can make matters worse, so it is wise to speak with the creditor early.
The settlement between the partners is a separate claim, which can be enforced in court if necessary. Whether that pays off depends on the amounts and the evidence. The payment history is therefore the most important document to secure.
Why the payment history matters so much
Whether a split works often becomes clear only in hindsight. If you keep paying instalments after a separation, keep your bank statements and give every transfer a clear purpose. If you make payments from a joint account without agreement, note the reasons. These records help if shares are disputed later, and they prevent claim against claim. A simple table with date, amount, contract and payer is enough for this.
Dealing with new contracts matters just as much. If you take out your own loan after a separation, check whether it is linked to earlier joint obligations. When applying for new credit, banks usually ask about existing commitments, and incomplete details can cause problems later.
Frequently asked questions
Must the bank agree to a change of partner?
As a rule yes, because the creditor chooses with whom it concludes a contract. The bank decides case by case whether it releases one partner from the contract. The income of the remaining partner and any security play a role. There is no automatic entitlement to such a release.
What applies to debts that only one partner took on?
Towards the bank, only the partner who signed the contract is generally liable. Between the partners, questions of settlement can still arise if shared expenses were financed with it. This question is closely linked to the liability for joint loans, explained in detail in Liability for joint loans: what partners should know (in German).
Who pays the rent after a separation?
The tenancy binds both partners towards the landlord for as long as it is not changed. Internally the partners can agree who pays the rent. One partner moving out does not change the liability automatically, so it is worth speaking with the landlord.
Where can you turn for larger debts?
If you cannot sort out the situation alone, a recognised debt advice service can help. There, contracts can be sorted, priorities set and talks with creditors prepared. Household planning after a separation can also be discussed there.
What you should do now
- Create a complete list of all joint contracts and accounts.
- Agree a cut-off date and a distribution key, preferably in writing.
- Talk to the banks and providers about transfer or termination.
- Keep proof of payment until all contracts are settled.
Related articles
- Family, Partnership and Money: The overview for young adults
- Liability for joint loans: what partners should know
- Divorce and finances: what young couples should know beforehand
- Household budget for two: sharing shared expenses fairly
Sources: Section 426 BGB, settlement between joint debtors (German), legal text.
Last updated: November 2026. This guide is general information, not individual advice.
