In a divorce, the joint property often forms the most important asset. Arrangements must be made about who remains living there and how the property is divided.
Options for the Property
| Option | Description |
|---|---|
| Takeover by one partner | Buy out the other and assume the mortgage |
| Sale of the property | Divide the proceeds between both parties |
| Temporary retention | For example, until the children reach majority ('nesting') |
| Rental of the property | Share rental income between partners |
Takeover by One of the Partners
If one partner wants to retain the property, these are the steps:
- Pay out half of the equity to the ex-partner
- Be able to bear the mortgage payments oneself (income test by the bank)
- Release the ex-partner from joint and several liability
- If necessary, have an appraisal of the property carried out
Who Remains in the Property?
If there is no agreement on who remains in the property, the court in Westland can establish a temporary arrangement. Important considerations are:
- With whom the children primarily reside
- Who can most easily find alternative housing
- Who needs the property the most
- The ownership proportions of the property
Rental Property in Divorce
In the case of a rental property, the court in Westland can decide to assign the tenancy agreement to one partner, even if both are on the contract. The other partner must then leave, and the landlord must accept this.
Financial Consequences
| Scenario | Consequence |
|---|---|
| Property equity | Normally divided fifty-fifty (or according to agreements) |
| Property shortfall | Remaining debt is also divided |
| Mortgage interest deduction | Departing partner retains right to deduction for 2 years |
| Home ownership allowance | Assigned to the remaining partner |