A separation is always emotionally stressful—especially when children or shared property are involved. Who stays in the home, who takes over the mortgage, and which financial pitfalls need to be avoided? We show you how to arrive at a viable solution step by step so that your living situation remains manageable and predictable even after the separation.
1. In a nutshell
- Joint property affects both partners financially and legally – clear agreements are crucial.
- Mortgage obligations often exist for both parties, even if only one person takes over the property.
- Sale, takeover, or debt restructuring are the most common options.
- Professional support helps to avoid costly mistakes and find a fair solution.
2. Who is liable to the bank?
In the event of separation or divorce, the following applies: as long as the land register and loan agreements have not been amended, both parties remain liable for the financing. This can mean:
- The loan continues to run in both names, even if one person moves out.
- Upon request, the bank will check whether it can release one partner from the loan (release from liability).
- Upon request, the bank will check whether it can, for example, include the new partner in the loan (change of debtor).
- Without legal and financial clarity, unintended debt traps can arise.
As long as such joint liabilities are not clearly separated, all parties involved will continue to be liable to the bank. This may also block the way to purchasing a new property of your own.
3. Sale as an option
Sometimes selling is the easiest solution to avoid conflicts. This has several advantages:
- Liquidity is released for both parties.
- The property can be transferred to a new owner without overburdening either partner.
The sale process can often be expedited if clear measures are taken in advance (renovations, energy performance certificate, documentation).
4. Personal use, utilization, and rights
Who stays in the property, who moves out? It is worth considering all the options here:
- Use by one partner: Who moves in, who stays out? Is there a rent payment between the parties?
- Adjustment of contracts: Land registry changes, loan restructuring, notarial agreements.
- Tax and legal aspects: Divorce can have tax consequences that should be considered at an early stage.
5. Small effort, big impact
Expensive renovations or complicated contracts are not always necessary. Even small steps can help:
- Organize bank documents: each partner should have access to current loan agreements and current remaining loan information. Always notify the bank of any changes of address so that they can reach you.
- Organize real estate documents (here, too, each partner should have “their” set of documents): current land register extract, living space calculation, calculation of converted space, dimensioned crosssection, dimensioned floor plans, elevation drawings, declarations of division with all addenda, division plan, building description – to name the most important ones.
- Seek professional help early on: lawyer, notary, financial advisor.
- In such emotional moments, it helps to keep a clear head and take clear steps.
6. Case study: The M. family
Initial situation: 30 & 32 years old, married, one child. Condominium purchased jointly, loan in both names.
Challenge: Separation, one wants to take over the apartment, neither wants to be financially overburdened.
Solution: We examined the loan transfer and possible debt restructuring. Three scenarios were developed: sale, takeover with bank, short-term rental solution. In the end, the partner who was moving out was able to move out with security, and the remaining partner took over the apartment with affordable payments.
7. Conclusion
A separation is emotionally stressful enough – when it comes to real estate, it is especially important to have a clear plan. With professional support, legal and financial pitfalls can be avoided so that both partners can find a viable, fair solution.