The house in a divorce: selling, buying out or renting

What happens to the house? In a divorce, this is often one of the biggest and most emotionally charged questions. The house is usually the largest shared asset, and memories, the children and the monthly costs are all tied to it. Whether you own or rent: it helps to know the options and their consequences well, so that you can make a well-considered choice.

What does the choice depend on?

The decision depends on, among other things:

• who owns the house and how you are married or live together;
• the value of the house and the size of the mortgage;
• the monthly costs and what each of you can afford on your own;
• the interests of the children, for example school and familiar surroundings;
• what you want yourselves.

A home you own

Selling the house

Selling is the most common solution. The proceeds are divided and the mortgage is repaid. That sounds simple, but a lot has to be agreed: the asking price, who handles the sale, who pays the costs until the sale and who lives there in the meantime. If the house sells for less than the mortgage, a residual debt remains. We also make agreements about how to divide that.

One of you stays

If one of you wants to stay in the house, that person usually has to buy out the other. To do so, we establish the value of the house and calculate the departing partner's share. The partner who stays must be able to carry the mortgage alone, and the departing partner must be released from the mortgage. The buyout can be done, for example, by taking out a new mortgage or by dividing other assets differently.

Keep the consequences in mind: the monthly costs often go up, and the tax consequences of a buyout can be complicated. I set out the options with you. For mortgage advice, you can go to the mortgage adviser I share the front door with (see partners).

A rented home

With a rented home there are fewer options. If the lease is in both your names, you can agree on who stays. That could be the parent the children live with most of the time, or the person who can pay the rent independently.

Do consult the landlord: they often have to cooperate in transferring the lease to one name. If neither of you can afford the rent alone, you will both have to look for other housing.

Legal and financial points of attention

• The mortgage. Who remains responsible for the mortgage, until the sale or after the buyout?
• Taxes. Dutch tax rules on owner-occupied homes, such as mortgage interest relief, can play a part in the choice between selling and staying.
• The division. How the surplus value or residual debt is divided depends on how you are married and on your agreements. Other assets can also count: if one of you keeps the car, the other can receive a larger share of the surplus value.

The financial consequences of agreements about the house are significant. That is why we take our time over them. Read more about dividing assets under finances.

Finding a solution together

Want to know how I can help you choose what to do with the house? Read more about divorce mediation or book an introductory meeting without obligation.

Online introduction Introduction at the office Call +31 20 659 88 28