When two people get divorced, the atmosphere is usually tense anyway. However, the division of a joint property can make things even more complicated. If one of the spouses wants to stay in the property after the divorce, this often fails because they cannot pay out the divorced partner. The so-called equalisation of accrued gains, which actually ensures a fair division of property, often leads to financial challenges in such cases.
What does community of accrued gains mean?
In legal terms, marriage is a so-called community of accrued gains. The property of each spouse remains separate, even during the marriage. However, in the event of a divorce, the increase in assets acquired during the marriage (accrued gains) is divided between the partners - this is called equalisation of accrued gains. But how does this affect a jointly owned property?
Case 1: The property brought into the marriage
If a spouse bought or inherited the property before the marriage, it generally remains their property. However, any increase in value during the marriage is taken into account when equalising gains. Example: The value of the property increases from 300,000 euros (at the time of marriage) to 600,000 euros (at the time of divorce). The divorced spouse is then entitled to half of the increase in value - i.e. 150,000 euros.
Case 2: The property inherited during the marriage
If a property is inherited or gifted during the marriage, the entire increase in value counts as a gain. If the value remains the same as in case 1 (300,000 euros increase to 600,000 euros), the owner must pay out 50 per cent of the total value - i.e. 300,000 euros. If this sum cannot be raised, there is often the threat of selling the property.
Case 3: The joint property
If both spouses are entered in the land register as co-owners, there is no equalisation of gains for the property. In this case, the property is divided equally. If one of the partners wishes to keep the house, they must pay the other half of the value. Alternatively, both partners share the proceeds of the sale equally.
Conclusion: clarification and advice are crucial
Dividing a property after a divorce can be financially and emotionally stressful. Sound advice and professional support will help you find the best solution.
