Joint property that was once intended for a future as a couple often becomes a challenge in the event of a divorce. While assets such as money can be divided relatively easily, decisions about property are usually more difficult. Couples often lack clear agreements in such situations, which adds to the uncertainty.
The question of what to do with a jointly owned property during or after the divorce is particularly complex if it is still encumbered with debt. It is essential to take measures at an early stage and strive for a holistic solution.
Analyse financial status and property value
Before a decision can be made, a precise analysis of the financial situation is essential. This includes the determination of the property value by an experienced, regional professional estate agent. At the same time, all existing payment obligations must be recorded. A profitability calculation, including maintenance payments and any utilisation benefits, shows whether one of the partners can take over and financially support the property.
Avoid distress sale and partition auction
If neither partner can keep the property, a sale is often the most sensible solution. The proceeds can be used to pay off remaining debts and create a financial basis for a new start. However, an emergency sale or a partition auction should be avoided, as these usually involve considerable financial losses.
Joint sale as a fair solution
A joint sale of the property offers several advantages: It enables a fair division of the proceeds, the settlement of existing debts and usually also financial room for manoeuvre for a new start. An experienced estate agent will help to sell the property quickly and at a fair market price. It is important to clarify possible early repayment penalties with the bank in advance and to take tax aspects into account. Owner-occupied properties are generally not subject to speculation tax.
Would you like to find the best solution for your property? Get in touch with us! We will be happy to advise you on your options.
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