Divorce and joint property: your options
When couples get divorced and own a property together, the question often arises as to what should be done with the property. The answer depends on many factors, such as the ownership shares, the financial situation and whether children are involved. Here you can find out the most important options for dealing with a property in the event of divorce.
1. one partner remains living in the property
In this case, one partner stays in the property with the children while the other moves out. The partners can clarify:
- Whether rent must be paid to the partner who has moved out.
- Whether the rental payments can be offset against the mortgage or maintenance costs.
This option often requires legal support to protect both sides.
2. payment of the partner who has moved out
If one partner wishes to take over the property, the other partner can be paid out. Example:
- Property value: 300,000 euros
- Residual debt: 200,000 euros
- Already paid off: 100,000 euros
- Payout: 50,000 euros
Prerequisite: The remaining partner can finance the current loans alone.
3. transfer to the children
The property can be transferred to the children as a prior inheritance or gift. The remaining partner continues to live in the property with the children. This option is particularly suitable for families with only one child, as siblings could later have disputes about the property.
4. division of the property into two flats
A division into two residential units is possible if both partners wish to continue living in the neighbourhood. This requires authorisation from the local authority and an entry in the land register. This option requires a good relationship between the partners.
5. letting of the property
If both partners wish to move out, the property can be rented out. The rental income is shared. This option is attractive if the property is to be used by one of the children at a later date.
6. sale of the property
Selling is the most popular option in a divorce. The proceeds are divided equally and both partners can make a fresh start with their share. A professional property valuation is crucial in order to achieve a fair price.
7. partition auction
If the partners cannot reach an agreement, the only option is often a partition auction. This is carried out by the local court, but usually generates lower proceeds than a regular sale. This option should only be considered as a last resort.
Conclusion: making the right decision
Every situation is unique and the choice of the best option depends on the individual circumstances. Early advice from experts helps to avoid disputes and find a fair solution.
Get non-binding advice now
Robert Schüßler
Property valuer (EIA and IHK)
Note: This text is for information purposes only and does not constitute legal or tax advice. Please consult an expert if you have individual questions.
