Divorce property – these options are available
For married couples, the property they own together is often more than just their home; it also represents a significant asset and an important part of their retirement provision. But how should couples deal with their property in the event of a divorce?
Most married couples opt for the legal form of community of accrued gains when they get married. This means that in the event of a divorce, property acquired during the marriage, such as real estate, but also debts, belong to both partners. Unfortunately, such a division rarely runs smoothly.
Real division: division of the property into two separate flats
With this solution, the ex-partners remain living in the property and receive sole ownership of certain parts of the property. This is also legally fixed by a notarised declaration of division in the land register. Not every property is suitable for this, so it is worth consulting an expert.
The children take over the property
Another option is to transfer the property to the children of the marriage, but this requires the approval of a guardianship court. It is also possible for only one of the spouses to give their share of the property to the child; here too, the other partner must first give their consent.
The transfer: stay in your home and pay off your partner
Transferring ownership of the property can also be a solution. In this case, the other partner is compensated with an equalisation payment based on the market value of the property and the respective ownership shares. However, it should be noted that the current loan obligations must also be taken over.
The partition auction
Upon application, the property can also be sold at public auction if the two parties are unable to reach an agreement. However, caution is advised here: The proceeds often do not cover the debts and the highest bid is usually significantly lower than the possible sale price in a professional sale. This can lead to uncovered debts for which both spouses are liable. An amicable agreement is therefore always more favourable as it generates higher proceeds.
Letting
If a sale is unfavourable or the house cannot be kept alone after a divorce, it may be worth renting out the house. Please note that you will have to work with your ex-partner as landlord, unless you instruct an estate agent.
Selling the property
The majority of couples decide to sell their joint property when they divorce. At the end of the year of separation, each spouse has the right to demand the sale of the flat or house.
An experienced property expert and estate agent will carry out a thorough valuation of your property, conduct the marketing process professionally and negotiate with potential buyers in your interests. This way, you can concentrate fully on the other aspects of your divorce. If you have any further questions or require assistance with the sale of your property, we will be happy to assist you as experienced estate agents. Together we will find the best solution for your situation.
Do you have questions about buying or selling a property? Or would you like other advice? Get in touch with us! We will be happy to help you.
Hint
For reasons of better readability, the generic masculine is used in this text. Female and other gender identities are explicitly included where this is necessary for the statement.
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific individual case.
Photo: © cottonbro/Pexels.com
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