Divorce not only means the end of a relationship, but often brings with it considerable financial issues – especially when it comes to the shared home. Who can stay, who has to go? And what fair solutions can be found for the shared property?
When a marriage breaks down, the joint property often becomes a point of contention – especially if there is an ongoing property loan. The ex-partners are then faced with the decision of continuing the loan together, transferring it to one person or paying it off early, which can result in additional costs.
If no agreement is reached, the only option is often a partition auction, which usually involves financial losses. A sale also needs to be well thought out, as tax factors such as speculation tax or land transfer tax can play a role. To avoid financial disadvantages, all options should be carefully weighed up.
How does the equalization of accrued gains work?
If the two partners have not drawn up a marriage contract before the wedding, the community of accrued gains automatically applies. Assets that existed before the marriage remain with the respective partner, while assets acquired during the marriage belong to both partners. In the event of a divorce, the initial and final assets are compared and the partner with the higher gain must pay compensation. Property acquired jointly during the marriage is divided, while inheritances and gifts are excluded.
What solutions are there for the property after the divorce?
In the event of a divorce, the two ex-partners have various ways and options for dividing the real estate assets between them.
A real division is possible if the house can be converted into two separate residential units. Alternatively, the property can be sold and the proceeds divided after deducting loans. One partner can also take over the house by paying out the other.
There is also the option of letting the property, whereby the rental income is split, or transferring it to adult children, possibly with existing loan liabilities. In the event of disagreement, a partition auction can be held. A partner’s right of residence is also conceivable if they remain in the house rent-free.
Property division: valuation, loan transfer and sale
The value of the property is determined by deducting the existing liabilities from its market value. The disbursing partner then takes over half of the adjusted value. If you want to create a fair basis for negotiations, you should have the value of the property objectively assessed by an experienced expert.
If there is a joint real estate loan, the bank’s consent is required to transfer the loan to the remaining partner. If this is not possible, there is still the option of continuing the loan together or paying it off early – which often incurs an early repayment fee.
If you are considering selling your property, an experienced estate agent can provide valuable support. Having a professional at your side will make the sales process much smoother and help you to master all the necessary steps efficiently.
If you have any questions or need assistance in selling your property, as experienced real estate agents we will be happy to help you find the best solution for you.
Notes
The generic masculine is used in this text to improve readability. 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.
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