
Divorce property: Nina wants to stay, Nils wants to sell – what now?
Actually, Nils doesn't want anything to do with the house after the divorce. He has lived there with his family for many years and now wants to draw a line under it. His friend, who is a lawyer, has also told him that if he remains a co-owner of the property, he will continue to be fully liable for the outstanding debts to the bank, not just for his share. When Nina and Nils bought the house 12 years ago, they took out a 15-year fixed-rate mortgage. In three years, they would also have to arrange follow-up financing, and it would take them 18 years or so to become completely debt-free. If Nina were no longer able to pay her share of the monthly loan instalments at some point, Nils would be left with the entire burden.
Nils has no desire to do this, even if he could then reduce the maintenance payments Nina owes him for using the property by the amount of the rent. If Nina really wants to stay in the house, he would prefer to sell her his share. But how could that work? Nina wouldn't be able to pay him the value of his share of the property in cash unless she robbed a bank. And then his chances of leaving his old marriage behind and concentrating fully on a new start would be slim again.
"What other options are there?" Nils wonders. Once the divorce is final, he could go to court and request a partition sale, which would force Nina to move out after all. But he also knows that's not a good idea. Not only because the proceeds would be far too low, but also because it would almost certainly lead to endless stress with Nina. Perhaps they could try to find a buyer who would purchase the house without Nina having to move out. Nils' lawyer friend once told him about a so-called "rent-to-buy" agreement, where an open-ended rental contract is signed at the same time as the purchase agreement. The new owner would then rent the property to Nina and she could stay there. Nils realizes that this would reduce the purchase price, but he would be willing to accept that. So that would be one solution. But are there really people out there who want to buy a rented single-family home rather than one that has been vacated? Perhaps as an investment? Nils isn't really sure, but maybe he should talk to Nina about the idea. They could give it a try. In that case, they would definitely need a professional valuation. Once Nina is ready to go that far, and if the lease-back option doesn't work out, maybe she'll agree to a "normal" sale and a move after all. Nils will also offer to help her find a new place and renovate it. The main thing is that he has his peace and quiet afterwards.
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Not found what you're looking for?
- familienrechtsinfo.de: House in divorce
- mainz-kwasniok.de: Auction during separation
- immobilienscout24.de: Selling your house and renting it back
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific case.
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