In a divorce, the joint property is often the most important asset. A decision must be made about who remains in the property and how it is to be 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 keep the property, they must:
- Pay out half of the equity to the ex-partner
- Be able to bear the mortgage payments themselves (income test at the bank)
- Release the ex-partner from joint and several liability
- Possibly have the property appraised
Who remains in the property?
If there is no agreement on who remains in the property, the court in Rijswijk can establish a temporary arrangement via the District Court of The Hague. Relevant factors include, among others:
- With whom the children primarily reside
- Who can more easily find alternative accommodation
- Who needs the property the most
- The legal ownership of the property
Rental property in divorce
In the case of a rental property, the court may allocate 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 |
|---|---|
| Property equity | Usually divided fifty-fifty (or according to marital property agreement) |
| Property shortfall | Remaining debt is also shared |
| Mortgage interest deduction | Departing partner can claim this for up to 2 years after departure |
| Owner-occupied property imputation | Awarded to the remaining partner |