On June 16th, 2019, Law 5/2019, of March 15th, regulating real estate credit contracts (hereinafter the «New Mortgage Law») came into force, which includes a series of new features that affect both customers and financial institutions offering loans with mortgage guarantees.
The first objective pursued by the New Mortgage Law is to establish measures for the protection of individual consumers who are debtors, guarantors or guarantors of loans secured by mortgage or other real right of guarantee on real estate. To this end, the New Mortgage Law establishes the following objectives:
To enhance legal certainty and transparency
To facilitate and guarantee the understanding of contracts and their clauses.
To regulate and establish a fair balance between the parties
In addition, it is relevant to take into account that the New Mortgage Law aims to transpose into national law the European Union regulations on this matter, reflected in Directive 2014/17/EU of the European Parliament and of the Council, of February 4th, 2014.
Questions and Consequences of the New Mortgage Law
There is a lot of confusion with the new Law regulating Real Estate Credit Contracts known as the «mortgage law». For this reason, we offer you 7 basic questions to take into account before this new change that affects banks and clients.
Does the new mortgage law affect what I am already paying?
This new law already in force will apply for all contracts signed from June 16, 2019. For customers who signed at an earlier date, they will not be able to benefit from many of the aspects to take into account. Although some of them will be retroactive.
Extension of the foreclosure period in case of non-payment.
Opportunity to change bank without the current entity being able to prevent it.
Change of a variable loan to a fixed rate with a discount in the commission.
What is the PSD2 standard?
Es posible que durante los últimos días hayas recibido alguna comunicación de tu entidad bancaria en relación con la entrada en vigor de la nueva Directiva (UE) 2015/2366 sobre Servicios de Pago, también denominada PSD2 (Payment Services Directive 2). Esta Directiva deroga la normativa europea anterior, la Directiva […]
The mortgage loan reference index (IRPH) is an interest rate that is calculated as a weighted average of the interest rates of loans with mortgage guarantee, with a term equal to or greater than 3 years, for the acquisition of free housing.
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Part I. Spain.
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Is it possible to compel the payment of alimony in a divorce case with shared custody?
The answer is yes.
The agreement of a shared custody does not imply that the payment of alimony is not necessary, since it is one of the main obligations of the parents and a right of the minor children, protected by our legal system.
What is included in the alimony?
Article 142 of the Civil Code understands the obligation of alimony as everything indispensable for sustenance, room, clothing and medical assistance. It is, therefore, a right of the children to receive what is necessary to cover their needs related to food, housing, clothing and medical assistance, as well as all the expenses related to their education (school, extracurricular activities, etc.) while they are minors. Likewise, it also corresponds to children of legal age when they have not completed their education for a reason not attributable to them.
How is it calculated?
On the other hand, Article 143 establishes the obligation of both parents to provide alimony to their children. Regarding the amount to be paid as alimony, Article 146 establishes that the amount will be proportionate to the wealth or means of the giver and the needs of the recipient and will be established in the divorce settlement agreement or in the court decision. The amount will depend on factors such as, among others:
The number of children.
The needs of the children.
Economic income of the parent who must pay it and the needs of the one who must receive it.
Place of residence of the minor children.
The alimony will be reduced or increased according to the increase or decrease suffered by the needs of the provider and the fortune of the one who would have to satisfy them.
Compulsory nature of its payment
The Supreme Court, in its judgment 55/2016, of February 11, determined the obligation of the parent to pay alimony to the mother for the children of both and over whom they shared custody, due to the fact that the parent was unemployed, thus pursuing the High Court to avoid a situation of disproportionality when the children were with one or the other parent.
In any case, it is clear that divorce does not exempt the parents from their obligations towards the children (article 92.1 CC) and that it is an unrenounceable obligation: any agreement to the contrary is null and void. It will be the Judge who, in any case, determines the contribution to be paid by each parent and adopts the convenient measures to assure the effectiveness and accommodation of the benefits to the economic circumstances and needs of the children. The Judge will be able to extend the obligation to the children of legal age when they lack own income not being economically independent, and they cohabit in the family domicile.
Failure to pay the alimony established in the judicially approved agreement or in the judicial resolution during two consecutive months or four non-consecutive months can suppose a crime, typified in our legal system and that can be punished with the penalty of prison from three months to one year or a fine from six to 24 months.
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