Property in Divorce

"What happens to the house in a divorce?"

If there is a divorce, questions about the division of assets inevitably arise. With the high divorce rate in Germany - every third marriage is affected by it - a property is very often part of the joint assets. A situation in which the spouses should, if possible, decide what to do with the common house in the year of their separation. If one of the spouses takes over, the other must be paid. If the house is to be sold, everything can be set in the year of separation. The more time there is for marketing, the greater the chance of achieving a good selling price.

The valuation of your property

Regardless of whether a partner decides to take over the house or whether you want to sell your house, the valuation of your property is the starting point. The real estate valuation should be carried out by a real estate expert who knows the market and can determine a serious market value. Many factors affect the value of a home. This includes the construction, the equipment, the condition (possible need for renovation), the size of the property and last but not least the location of the house.

A sale price determined in line with the market is the best basis for your sale or takeover decisions. As a broker, we would be happy to offer you an initial appraisal of the value of your property. To do this, simply click on the button below

Who owns the property after the divorce

Upon marriage, the spouses enter into a community of gains. This means that the assets acquired during the marriage will be divided 50:50 in the course of the divorce. Provided that both spouses are registered as owners in the land register, the house belongs to both equally. Together, the spouses can decide what to do with the house.

Assets that existed before the marriage - including a house - are not included in the division of assets in the event of a divorce. The reason: the community of accrued gains begins on the day of marriage and ends on the filing for divorce.

The house is sold

If the spouses have decided to sell the house, they can already use the year of separation for sales activities. After the divorce has been completed, the proceeds (sales price minus all associated costs) are divided equally between the partners.

A partner takes over the house

If one of the spouses wants to take over the house, he must pay off the partner. The property valuation is used to determine the so-called compensation payment. The amount determined in this way corresponds to 50% of the value that was calculated for the house.

After the compensation payment has been made, the purchaser of the property is the sole owner and can decide on the further use of the house. He can continue to live in the house, rent it out or sell it.

If only one partner is entered in the land register

Basically, the owner is whoever is entered in the land register. If only one spouse has been entered in the land register, he or she can sell the house without regard to the partner or use it according to his or her ideas. The non-registered partner has no influence on this - he has no say. However, there are certain situations and circumstances that lead to payments for the house being due to the partner as part of the equalization of gains.

What happens to the house if the property is separated?

In addition to the statutory matrimonial regime - the community of gains - there are the optional property regimes: community of property and separation of property.

Spouses can exclude the community of accrued gains and register a marriage contract for the separation of property with the competent district court. As a result, the assets of the spouses remain separate, regardless of whether they already existed at the time of marriage or were acquired during the marriage.

In the event of a divorce, only the assets jointly acquired during the marriage – such as the house, the furnishings or the common household goods – are divided. It is therefore important, especially with regard to real estate, to specify in the marriage contract what will happen to the house in the event of a divorce.

What happens to the house if you separate without a divorce?

In principle, both spouses can agree on a separation without divorce. They can live in the common house, separated from table and bed, rent it out or sell it and move into separate apartments. It is also possible for one partner to stay in the house and the other to move out. Basically, the same decisions have to be made as with a decision to divorce.

Especially in the case of a separation without divorce, situations can change quickly. Therefore, clarity about the future of the property should be made in good time. Which of the two partners can possibly pay off the other? Who, if any, is able to service bank loans? Selling the house is often the more sensible decision. Here, too, the following applies: do not put off anything, make decisions promptly and seek advice.

The gain compensation for the house

If there is no marriage contract, the legally defined community of accrued gains applies to the spouses, which begins on the day of the marriage and ends with the application for divorce. If there is a divorce, the assets generated jointly during the marriage are divided equally between the spouses, i.e. the so-called equalization of gains determines the amount of money each spouse is entitled to.

The gain is determined by comparing the separately recorded initial assets of the spouses with the assets generated together during the marriage until the divorce application. An increase occurs when the assets have increased. Half of this gain is allocated to the initial assets of the spouses. If there are different gains, these must be compensated in money - there is an equalization of gains.

  • If a house is available, the value of the house is determined on the basis of a real estate appraisal.
  • If one partner is the sole owner of the house, he can dispose of the house alone and must also service any house loans alone.
  • A house bought or built during the marriage is part of the jointly acquired property and is included in the property division.
  • If both spouses are entered in the land register, they must decide together on the future of the house. In the event of a sale, the purchase price is included in the jointly acquired assets and is regulated in the equalization of gains.
  • If one of the spouses takes over the house, he must pay the other. For example, if the house was valued at 500,000 euros, he owes the partner 250,000 euros.

Conclusion : In any case, try to solve all the decisions related to your property together in the year of separation. If no agreement can be reached, there is a division auction, which only brings disadvantages and losses.

Have your property appraised in good time so that you have enough time for a planned sale.

As a competent broker, we are happy to offer you an initial appraisal. To do this, simply click on the following button.

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