Assets & discretion
Property in a Divorce
The shared property is often the largest asset – and one of the most emotional points. Three questions are central: who keeps it, what is it worth, and what happens to the ongoing mortgage? Those who act with foresight avoid the economically worst outcome – the partition sale. We find a financially sound and as conflict-free a solution as possible.
The Essentials at a Glance
- Three routes: one partner takes over and buys the other out, a sale with the proceeds split, or joint ownership continues for now.
- Last resort if you can't agree: a partition sale – which we try to avoid.
- For a buyout or the gain, the value must be determined.
- On the mortgage, both are often liable; release from liability needs the bank's consent.
- On a sale, capital gains tax may apply – we factor this in early.
Who Keeps the Property?
Essentially there are three routes: one spouse takes over the property and buys the other out, the property is sold and the proceeds shared, or joint ownership continues for now – for example, until the children are older. Which route fits depends on wishes, affordability and your life situation. If you cannot agree at all, the last resort is a partition sale – usually the worst outcome economically, because it often sells below value, which is exactly what we try to prevent.
Valuing the Property
For a buyout or the equalisation of gains, the value must be determined – ideally transparently and, where necessary, by an expert. A realistic valuation is the basis for a fair buyout: set too high, the buyout becomes unaffordable; set too low, one side loses out. We ensure a sound valuation and scrutinise valuations that are submitted.
What About the Mortgage?
Often both spouses are jointly liable for the loan. Two questions are central: who pays the instalments in future, and can one partner be released from liability? Such a release usually requires the bank's consent – which depends on whether the taking-over partner can carry the loan alone. This should be clarified early, as it determines whether a buyout is feasible. A refinancing or follow-up loan can also be part of the solution.
Tax: Watch the Capital Gains Period
On a sale, capital gains tax may apply depending on the holding period and use. For owner-occupied homes there are exemptions; for let properties within the speculation period, tax can arise. Transferring a co-ownership share to the other spouse can also be tax-relevant. We factor these questions in early so that no unexpected tax burden derails the planned solution, and coordinate with tax advisers where needed.
Scheideweg
Several properties, or one abroad, open a second path – with its own court and its own way of being enforced.
Several Properties and Real Estate Abroad
With several properties or real estate abroad, additional valuation and jurisdiction questions arise – for example, which country has jurisdiction over a property located abroad and how an equalisation is enforced there.
What to Watch For
With the property, a cool head pays off despite strong feelings. Clarify three things early: a realistic value, the affordability of a buyout, and the bank's stance on releasing a partner from liability. Don't promise to "keep the house" before it is clear whether you can carry the loan alone – otherwise the solution rests on shaky ground later. And remember the tax: a sale within the speculation period, or the transfer of a co-ownership share, can have tax consequences that change the outcome.
What Makes a Good Solution
The best solution is rarely the loudest. Those who know the figures early – value, remaining debt, possible buyout, taxes – can decide calmly instead of selling under pressure. We bring these figures together for you, work the three routes through economically and negotiate an arrangement you can actually afford. That way we avoid the partition sale and keep conflict as low as possible – especially where children live in the home.
Frequently Asked Questions
Who can stay in the home after separation?
That is a separate question (use of the matrimonial home) and depends on the situation – especially where children live there.
Does the house have to be sold?
Not necessarily. Often a buyout by one partner is possible; a sale is only one of several routes.
How is the value determined?
Through a transparent valuation, where needed by an expert report – the basis for buyout and gain.
Can I be released from the joint mortgage?
Possible, but it requires the bank's consent. We clarify this early.
Will tax arise on a sale?
Depending on holding period and use, capital gains tax may arise; for owner-occupied homes there are exemptions. We check this in advance.
What is a partition sale?
The court-ordered auction of the shared property as a last resort when you can't agree – usually economically unfavourable, and therefore to be avoided.
What applies to a property abroad?
Here jurisdiction and enforcement questions are added; we coordinate with local specialists where needed.
What about a property that isn't paid off yet?
A financed property can still be taken over, sold or held jointly. The key is how the remaining debt and liability are arranged – which we clarify with the bank.
Who bears the running costs until things are settled?
Ongoing costs and instalments are often a point of dispute in themselves – we arrange this as early as possible.
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