DIVORCE: SELLING A JOINT PROPERTY IN THE YEAR OF SEPARATION

For many ex-couples, selling the property they bought together after the divorce is already a major challenge. But what if you want to sell the house or flat during the year of separation? You can find some useful initial information here.

Sale in the year of separation: owners must be in agreement

The year of separation is an important prerequisite for a divorce. Nevertheless, many ex-couples do not want to wait until the divorce to sell their property – for example, to draw a quick line under the divorce. In principle, you are free to sell your property, even during the year of separation. However, as co-owners you must agree on the sale.

Important: Unlike after the divorce, a partner cannot demand the sale of the property during the year of separation. Only after the divorce has been finalized can one owner sell the property without the consent of the other. However, as the so-called partition auction is equivalent to a forced sale and often achieves lower proceeds than a regular sale, this unilaterally enforced procedure cannot be recommended.

What are the arguments in favor of selling during the year of separation?

The year of separation is generally recognised even if the ex-couple continue to live under the same roof: with separate bedrooms, separate household chores such as cooking, shopping, etc. Of course, there can be many complications here, so couples often want to sell during the year of separation. Another reason could be to take advantage of a currently favorable market situation in order to achieve a good sale price. The proceeds from the sale could also be used to repay the loan early, provided the bank does not charge a prepayment penalty.

What should I bear in mind when selling during the year of separation?

If you want to sell a property during the year of separation, you must observe the speculation period. This ends after three years for owner-occupied properties. If you sell the property after just one or two years due to separation, the state will levy a speculation tax on the sale proceeds.

This must also be taken into account: If an owner moves out of the shared property after the separation, their right of residence remains in place, meaning that they are entitled to compensation for use when they move out. This is based, among other things, on the amount of the co-ownership share, income and the current market value of the property. The compensation is valid until the divorce is final. After that, the compensation for use is generally offset against the maintenance.

How does the sale proceed in the event of a separation?

If both owners agree on the sale, it can be processed as normal. The proceeds are divided equally, regardless of the actual ownership structure.

Have you separated and want to sell your property? Don’t rush into it and first seek advice on the market situation, the current market value of the property and your options. We at Victor Investment will be happy to support you during this difficult time. Get in touch with us!