2023-12-12 10:54:46
– The consequences of a divorce on real estate (2/2)
Every month, find practical advice from a mortgage loan and real estate sales specialist.
Dimitri Cassard – Deputy Head of Western Region MoneyPark, a Helvetia company
Published today at 11:54 a.m.
As soon as you purchase the property, seek advice from a notary or a lawyer to choose the best form of ownership.
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“For better and for worse”! The expression can take on its full meaning in terms of liquidation of real estate assets during a separation or divorce.
We saw in the previous article that laws made it possible to regulate the allocation of housing according to the matrimonial regime adopted. However, certain financial and administrative complications will remain to be resolved.
These inconveniences can particularly appear if one of the two partners does not want to abandon their co-ownership. In such a case, it is strongly recommended to carry out an estimate of the market value serving as a basis for mediation in order to avoid a possible reclassification of the conciliation agreements during the judgment.
“It is strongly recommended to carry out an estimate of the market value serving as a basis for mediation in order to avoid a possible reclassification of the conciliation agreements during the judgment.”
It also happens that the provisions set out in the divorce judgment cannot be applied, particularly when the property is allocated to one of the partners and the latter is not accepted by the financing organization as the sole debtor.
In addition, a financial institution, already a pledgee of a property financed for several years on the basis of an acquisition price often lower than its current market value, might refuse an increase in financing with the aim of compensating the transferor spouse . Indeed, the income of the remaining debtor must be sufficient to guarantee the maintenance of the property charges. In this case, the transferring party might offer to take over part of the mortgage interest and obtain in return a right of purchase, usufruct or any other form of right in compensation.
If there are changes to the arrangements made when taking out a mortgage, other charges may result in financial hardship for both parties if the property is retained or sold. These costs must be taken into consideration when making decisions regarding the future of the real estate assets subject to this debate.
“It would be appropriate, as far as possible, to keep all records relating to the acquisition of the home, including subsequent expenditures, in order to be able to prove, where applicable, the origin of the funds invested.”
For example, a penalty for early termination of the mortgage loan in the event of sale of the property or transfer of financing to a financial institution having validated the recovery operation by one of the two spouses. It may also involve costs for establishing additional mortgage certificates in the event of an increase in financing for financial compensation. We can also cite a tax on withdrawals from 2nd and 3rd pillar assets used to amortize the existing loan or to repurchase the co-ownership share of the outgoing ex-spouse. Or even a tax on the capital gain in the event of the sale of the property, or valuation costs and other administrative costs.
To conclude, we advise you, upon purchase, to seek advice from your notary or lawyer to choose the form of ownership. It would then be appropriate, as far as possible, to keep all the records relating to the acquisition of the accommodation, including the expenses incurred subsequently in order to be able to prove, if necessary, the origin of the funds invested, without forgetting to note with what money the mortgage has been amortized over time.
Your columnist: Dimitri Cassard, deputy head of the West Region of MoneyPark, a Helvetia company.
DR
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