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Selling joint property during a year of separation – there are many reasons to do so

Dividing shared property is often a huge challenge for married couples going through a divorce. Even when both partners are in agreement. In many cases, selling the property at an early stage can be the best solution for both parties. However, if one spouse wishes to remain in the property after the divorce, caution is advised when establishing the facts during the separation year.

Even putting the separation year into practice is not easy for owners of joint property. The law requires that a married couple must live apart for one year before they can divorce. However, many cannot afford the additional costs of renting a separate apartment and therefore spend the separation year under the same roof—just without sharing a bedroom, kitchen, or groceries.

Short and sweet: selling the property during the separation year

It is therefore possible to run separate households in a shared property if necessary – but wouldn't it be much easier to sell the house straight away? There are a whole host of arguments in favor of this. The property was often financed with a loan, which must continue to be repaid by both partners during the separation and after the divorce. Selling, on the other hand, opens up the possibility of paying off loans and debts in one fell swoop – and taking advantage of the current high prices on the real estate market. What a relief! Dividing the proceeds of the sale between the spouses is much easier than any other solution. Those who approach the sale of divorce property early and without time pressure can also take their time to find a buyer. This means good chances for a significantly higher sale price. To avoid disputes during the sale process, an impartial, expert real estate agent should be hired. This way, neither partner can question the fairness of the sale afterwards. Conclusion: by selling early, even during the year of separation, spouses going through a divorce can avoid a lot of potential conflict.

One stays – the other moves out: complicated legal situation during the separation year

Nevertheless, for practical reasons, the decision is often different. One parent wants to stay in the familiar environment with the children and continue to use the property. The other partner is supposed to move out and find something new. When it comes to the rough timetable, many couples can agree quite quickly even in such cases. Many also do not want to drag out the process painfully, but want to settle everything clearly during the separation year—with a proper contract. However, there are legal consequences to consider that you probably do not expect, such as equalization of gains, housing benefits, and maintenance claims. you should always seek legal advice on the possible disadvantages of dividing divorce property during the separation year so that you do not encounter any unpleasant surprises later on in the divorce proceedings.

Are you unsure about the best solution for your divorce property? Contact us! We will be happy to advise you.

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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.

Photo: © HayDmitriy/Depositphotos.com
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