From 1975 to 2018, the divorce rate in the Netherlands rose to as much as 37.1%. So for every three marriages, there is a divorce in the Netherlands. But what does a divorce mean for joint assets and especially for the home? BOXIE24 informs you about the process and asset division in divorce.
Divorce: marriage contract or community of benefits
If you signed a notarised marriage contract, the divorce differs slightly from a normal one. The deviation and details were specified in the marriage contract, so the marriage contract decides in these cases.
Normally, no marriage contract comes into existence and therefore, as a married couple, you live in the property system of community of acquisitions. Under divorce law, a pension adjustment always takes place upon divorce.
Once the marriage is separated, divorce law calculates how much gain the spouses made during the marriage. If there is a difference here, the spouse who contributed the largest profit will usually have to pay half of the difference in cash to his ex.
An inheritance or gift during the marriage period is excluded from the profits; these values are treated as if they had existed from the beginning of the marriage.
Profit community explained in 6 simple steps:
- The initial fortune of both spouses is listed separately
- The final fortune of both is determined
- The difference is the profits
- Community of gains → profits are added together
- Total profits are halved
- The spouse who earned more than this half must offset these gains
What happens to the property during and after divorce?
The first problem is that a claim from profits is a pure claim for cash. However, many assets – such as the common house – cannot simply be divided in half. Therefore, the departing person has to come to an agreement or get a court to decide.
During the divorce period, both spouses have the right to live in the house they acquired together until the marriage is legally separated. As a result, no one can leave the other for the time being. Usually, one of the partners voluntarily leaves the shared property, preferring to stay with a friend instead of constantly fighting.
Renting storage space during divorce
On the one hand, he may need to rent a storage space right away to keep his belongings in safety, but on the other hand, he should be aware that a hasty move could mean the loss of his right to use. Even if you are living together in a property for the time being, you can consider renting your own warehouse in advance. This will keep you flexible and allow you to move your own belongings to safety at any time.
Transfer after paying off
The couple should decide together what happens to the shared house. If one of the two stays in the house, he has to pay the other spouse. This can be done all at once or in instalments. However, the property is not transferred until the ex-partner is paid off.
Division of the property
Another option is a true division of the property, dividing the house into two structurally separate living units. This means that everyone has a share and can sell it or live in it. For this, however, the property must meet certain conditions and the spouses must want it.
Paying off loans
A common variant is selling a house: the proceeds are used to repay existing loans and pay the early penalty that often arises. The rest is shared and both ex-spouses will have to find a new place to live.
Here, it is often convenient to rent an intermediate storage facility to make the move easy and stress-free. Because with the help of the warehouse, each divorced person can pack their own belongings on their side and have immediate access to them without meeting their ex-partner. Self-storage is also a great way to store your belongings while you move.
Tip: sell your home in the year of separation
If you decide to sell the joint home, it is advantageous to have this done before the end of the year of separation. Because this gives you immediate liquidity with which to carry out the settlement and deal with everything.
Temporarily store your furniture
If you are wondering where to quickly store your furniture, BOXIE24 has the solution for you: renting a storage unit can make many steps easier for you and takes the wind out of the sails of any space problem. So you can – if you have the financial means – buy a new home that suits your current needs. BOXIE24 has also compiled a moving checklist for you, so you don’t forget anything.
Ward auction after divorce
If, as a married couple, you cannot agree on the future of the property you share, you can apply for a division auction.
The auction is conducted publicly by the foreclosure judge and is a measure of enforcement After deducting court costs and an expert opinion, the sale proceeds are divided between the previous owners – you and your former spouse.
Tax rules on divorce
If one spouse wants to take over the joint assets and both agree, they need to know what to consider for tax purposes. Don’t take too long with the transfer so that it is directly and temporarily related to the divorce. If it is not, you will have to pay transfer tax on the part you also receive.
Avoid speculation tax
In addition, you should not live outside the joint home for too long so that the tax authorities do not charge you speculation tax. You do not have to pay this if you have used the property for residential purposes in the current and previous two calendar years. The speculation tax is calculated based on the capital gain on the property and your income tax rate.
- Divorce and house: all the facts at a glance
- No marriage contract: both spouses own 50% of the house
- Selling a house or paying off a spouse
- Disagreement: divisional auction
- Loans continue as contracted
- Foreclosure auction yields less money than property value
- With the divorce petition, the house can be bequeathed to the children.