The number of divorces increased from 1975 to 2018 to a maximum of 37.1%. So for every three marriages there is a divorce. But what does a divorce mean for the communal property and especially for the home? Boxie24 informs you about the process and the division of assets in the event of divorce.
Divorce: marriage contract or community of benefits
If you have signed a notarized marriage contract, the divorce is slightly different 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 is concluded and that is why as a married couple you live in the property system of the community of acquisitions. In the event of divorce, according to divorce law, a pension adjustment always takes place. If the marriage is divorced, the divorce law calculates how much profit 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 profit; these values are treated as if they had existed from the beginning of the marriage.
Profit community explained in 6 easy steps:
The initial property of both spouses is listed separately
The ultimate fortune of both is determined
The difference is the profit
Community of Profits → Profits are added together
The total profit is halved
The spouse who has earned more than this half must offset this gain
What happens to the house during and after the divorce?
The first problem is that a profit claim is a pure cash payment claim. However, many assets – such as the communal house – cannot simply be split in half. Therefore, the outgoing person must come to an agreement or have a court 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, nobody can leave the andej for the time being. Usually, one of the partners voluntarily leaves the shared property, preferring to stay with a friend rather than constantly fighting. On the one hand, however, he may have to immediately rent a storage space to bring his belongings to safety, on the other hand he must be aware that a hasty move could mean the loss of his right of use. Even if you live together in a building for the time being, you can already consider renting your own warehouse. This keeps you flexible and allows you to bring your own belongings to safety at any time.
The couple must decide together what to do with the common house. If one of the two stays in the house, he has to pay the other spouse. This can be done in one go or in installments. However, the ownership is not transferred until the ex-partner has been paid off.
Another option is a true division of the property, dividing the house into two structurally separate residential units. This means that everyone has a share and can sell it or live in it. However, for this the property must meet certain conditions and the spouses must want this. So a real divorce rarely occurs in a divorce.
A common variant is selling a house: the proceeds are used to repay existing loans and to pay the early penalty that often arises. The rest will be shared and both ex-spouses will have to find a new place to stay. Here it is often useful to rent an intermediate storage facility to make the move easy and stress-free. Because with the help of the warehouse, every divorced person can pack their own things on their side and have direct 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 house in the year of divorce
If you decide to sell the joint home, it is advantageous to have this done before the end of the year of divorce. Because this gives you immediate liquidity with which you can carry out the settlement and handle everything. If you’re 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 will take the wind out of your sails with any space problem. So you can – if you have the financial means – buy a new home that meets your current needs. Boxie24 has also put together a moving checklist for you, so you don’t forget anything.
Departmental auction after divorce
As a married couple, if you cannot agree on the future of the good you share, you can sign up for a split auction. The auction is publicly conducted by the enforcement judge and is a measure of levy of execution. After deducting court costs and expert advice, the sale proceeds are divided among the previous owners – you and your former spouse.
Tax rules in divorce
If one spouse wants to take over the community property and both agree, they need to know what to consider for tax purposes. Do not take too much time with the transfer so that it is directly and temporarily related to the divorce. If this is not the case, you must pay transfer tax on the part that you also receive.
In addition, you should not live too long outside the communal home, so that the tax authorities do not charge you speculation tax. You do not have to pay this if you have used the house for residential purposes in the current and the two previous calendar years. The speculation tax is calculated based on the capital gain on the property and your income tax rate.
Divorce and Home: All the Facts at a Glance
No marriage contract: both spouses own 50% of the home
Selling a house or paying off a spouse
Disagreement: division auction
Loans continue as they are entered into
Foreclosure auction yields less money than the property value
With the divorce application, the house can be bequeathed to the children