What to do about your property when divorcing – these are your options

‘And what about the property?’ – many owners have to confront this question when divorcing if they co-own a property. There are several options. Which of these is the best depends on the individual circumstances.

Ehe aus, Hausverkauf?

Nicht unbedingt. Wir helfen Ihnen, die beste Lösung im
Umgang mit Ihrer Scheidungsimmobilie zu finden.
Kontaktieren Sie uns!

If a property is owned by both former spouses, their joint responsibility does not end with the divorce. Both of them must maintain and finance the property. In many instances, this doesn’t go well. The prospect of a partition auction often looms large. However, this ought to be avoided wherever possible, as it frequently results in financial loss. As a rule, both parties are better advised to consider one of the following options.

Selling the property

If you and your former spouse cannot agree on who gets to keep the property or if you are lacking the means to pay the other owner out, selling up is often the best solution. Not only can the proceeds of the sale be used to pay off the outstanding mortgage; often, there is a little money left over for a fresh start. Before proceeding, however, you should clarify with your bank whether they will demand prepayment compensation for the early repayment of the mortgage. You should also check whether you will have to pay capital gains tax on the proceeds. This is generally not the case if you are living at the property. Before selling up, you should also have your property professionally valued by an expert.

Transferring full ownership to your former spouse

If both ex-spouses can agree on who will retain the property, transfer of ownership can be certified by a notary. The person taking full ownership then pays the other person the agreed price. Here, too, we recommend a professional valuation of the property beforehand. The notary will then request an amendment to the ownership details in the Land Register. However, the issues of alimony payments and compensation for the property’s increase in value should be clarified beforehand; otherwise, both parties can suffer financial disadvantages.

The person transferring their share of ownership receives a large sum of money, which forms part of the final assets. By contrast, the person assuming full ownership doesn’t have to pay rent, which increases their disposable income, resulting in higher alimony payments. For the transferring party, it is also important to be released from any liability for repayment of the mortgage. Without written confirmation from the bank, the formal agreement cannot be notarised.

Physical partition

Another solution, albeit one that is infrequently implemented, is a physical partition of the property. This involves converting the property into two separate residential units. A prerequisite to this, however, is that the property is suitable for such a conversion in the first place. Following the conversion, the property is divided up in accordance with the respective homeowners’ association (WEG). The former spouses can thus live in their unit within the property, or sell or let it.

Still not sure what the best solution is for your situation? Get in touch with us! We are happy to advise you.

 

 

For more information:

https://www.rosepartner.de/familienrecht/immobilien-bei-trennung-und-scheidung.html

https://rechtsanwaelte-rf.de/ratgeber-familienrecht/immobilie-bei-scheidung/

https://www.steuerberater-pressler.de/steuerliche-auswirkungen-bei-scheidung/

 

Note

In this text, the generic masculine is used for better readability. Feminine and other gender identities are explicitly included to the extent necessary for the statement.

 

Legal note: This article does not constitute tax or legal advice in individual cases. Please have the facts of your specific individual case clarified by a lawyer and/or tax advisor.

 

Photos : © AndreyPopov/Depositphotos.com

APPRAISE YOUR PROPERTY NOW

Free of charge and without obligation

Verkauf einer Scheidungsimmobilie – was kann ein Makler für Sie tun?

Wenn sich Menschen trennen oder scheiden lassen, stellt sich oft die Frage, wie mit der gemeinsamen Immobilie umzugehen ist. Optionen gibt es viele, aber welche passen zu der eigenen Situation? Der Gang zum Immobilienexperten lohnt […]

Read more

Selling a property and moving home during lockdown – what to look out for

Your property is no longer right for you. It’s too small for you and your growing family, or too big now that the kids have left home. Yet now you are wondering about selling up during the lockdown […]

Read more

Facebook, Instagram & Co. für die Immobilienvermarktung?

Im Vergleich zu Online-Immobilienportalen spielen die verschiedenen Social-Media-Kanäle scheinbar nur eine untergeordnete Rolle, wenn es um die Vermarktung von Immobilien geht. Denn wer gezielt eine Immobilie sucht, hält üblicherweise nicht in erster Linie in den […]

Read more

OUR TEAM

with passion for service

Mathilde Allemand

Office Berlin Wilmersdorf

Junior Project Manager

French, German, English +49 30 88 70 24 08 mathilde.allemand@aden-immo.com

Michael Bautz

Office Berlin Friedrichshain

Real Estate Agent

German, English +49 30 29 77 87 80 michael.bautz@aden-immo.com
Lars Drewes

Lars Drewes

Office Berlin Wilmersdorf

Head of Sales

German, English +49 30 23 633 533 lars.drewes@aden-immo.com
Foto Mitarbeiterin Isabelle Goncalves

Isabelle Goncalves

Office Berlin Wilmersdorf

Real Estate Agent

French, German, English +49 30 887 024 07 isabelle.goncalves@aden-immo.com

Robina Henicke

Office Berlin Friedrichshain

Real Estate Agent

German, English +49 30 29 77 87 80 robina.henicke@aden-immo.com

Annabel Huard

Office Berlin Wilmersdorf

Senior Project Manager

French, German, English +49 30 88 70 24 08 annabel.huard@aden-immo.com

Udo Lewin

Office Berlin Wilmersdorf

Real Estate Agent

German, English +49 30 23 633 533 udo.lewin@aden-immo.com

Olivier Montero

Office Berlin Friedrichshain

Real Estate Agent

French, German, English +49 30 29 77 87 80 olivier.montero@aden-immo.com

David Nguyen

Office Paris

Managing Director

French, English +33 1 56 33 70 70 david.nguyen@aden-immo.com

Hélène Salvanes

Office Berlin Wilmersdorf

Marketing & Business Development

French, English, German +49 30 88 70 24 08 helene.salvanes@aden-immo.com
Porträt Arnaud Schott_quadratisch

Arnaud Schott

Office Berlin Wilmersdorf

Managing Director

French, German, English +49 30 23 633 533 arnaud.schott@aden-immo.com

Cihan Selmo

Office Berlin Charlottenburg

Real Estate Agent

German, English, Turkish +49 30 220 66 11 77 cihan.selmo@aden-immo.com

Ulrike Siebert

Office Berlin Wilmersdorf

Marketing Manager

German, English +49 30 88 70 24 08 ulrike.siebert@aden-immo.com

Julian Strehblow

Office Berlin Charlottenburg

Real Estate Agent

German, English +49 30 220 66 11 77 julian.strehblow@aden-immo.com
Foto Mitarbeiterin Alice Thion

Alice Thion

Office Berlin Wilmersdorf

Rental Manager

French, German, English +49 30 887 024 07 alice.thion@aden-immo.com
Jeannette Zentel-Schertlin

Jeannette Zentel-Schertlin

Office Berlin Charlottenburg

Real Estate Agent

German, English, Spanish +49 30 220 66 11 77 jeannette.zentel-schertlin@aden-immo.com