The difficult life period of a divorce is also accompanied by many settlements - and this involves the settlement of the marital property, which often includes common property of spouses. What should be the procedure?
In most cases, the property is part of the joint property of the spouses - that is, if the spouse acquired it during the marriage. In a situation where divorce occurs, the question of real estate settlement comes up. Do you know how to do it?
Ideal solution? After all, a peaceful agreement - but in many cases it is impossible. Another option is to sell the property as part of a divorce before the joint property of the spouses is settled - the purchase price is then distributed as part of the settlement. This option is simple - the couple will consult their broker and find out in advance the possible purchase price of the property. If this procedure is not possible, there is a real division of the common property of the spouses. Then you can:
- to conclude an agreement on the settlement of the joint property of the spouses
- make a motion for a court to settle the marital property (for example, when you cannot reach an agreement)
- wait 3 years from divorce, after which the property becomes co-owned by both spouses - of course with the same share (applies if neither spouse applies to the court for a decision on the matter)
Agreement is the solution
If you are able to agree, you can enter into an agreement to settle the marital property before the divorce itself. Such agreement is then a condition of undisputed divorce - possibly within 3 years after divorce. There are then several ways to deal with the settlement of assets under the agreement:
1 The sale of property by both spouses, financial profit is divided by agreement
The property may remain in the co-ownership of the spouses; this is a solution in cases where the spouses agree that one of them will continue to use the property or leave the property to children
The property remains with one of the spouses who financially pays out other
What if you have a mortgage?
Was the acquisition of property financed by a mortgage? Then the property is likely to be pledged against the bank. Even in this case, however, there is no problem to sell the property and subsequently pay off the remaining amount of the loan but be aware of possible penalties for early repayment. If only one of the spouses wants to acquire ownership of a property, the bank must either: agree to be tied up on the basis of creditworthiness and to meet the conditions set by the bank or to take over the mortgage. It depends on the bank with which the property is financed.
ATTENTION: Agreement for which a married couple must be registered at the Land Registry in the mentioned period of 3 years after the divorce. Otherwise, the relationship between the spouses and the real estate will change to joint ownership.