In a divorce, the joint home often forms the largest financial component. It must be determined who will continue to live there and how the home will be divided.
Options for the home
| Option | Description |
|---|---|
| Takeover by one partner | Buy out the other and assume the mortgage |
| Sale of the home | Divide the proceeds between both parties |
| Temporary retention | For example, until the children reach the age of majority ('nesting') |
| Rental of the home | Share rental income between partners |
Home takeover by one partner
If one partner wants to keep the home, the following steps are required:
- Pay out half of the equity to the ex-partner
- Be able to bear the mortgage payments oneself (income test at the bank)
- Release the ex-partner from joint and several liability
- Possibly have an appraisal of the home carried out
Who remains living in the home?
If there is no agreement on who will remain in the home, the court in Zoetermeer can establish a temporary arrangement. Relevant factors include, among others:
- With whom the children primarily reside
- Who can more easily find alternative housing
- Who needs the home the most
- The ownership status of the home
Rental property in divorce
In the case of a rental property, the court may decide to assign the tenancy agreement to one partner, even if both are named on the contract. The other partner must then leave, and the landlord must accept this.
Financial consequences
| Situation | Consequence |
|---|---|
| Home equity | Usually divided fifty-fifty (or according to agreements) |
| Negative equity in home | Remaining debt is also shared |
| Mortgage interest deduction | Departing partner retains deduction for another 2 years |
| Owner-occupied property imputation | Assigned to the remaining partner |