Real estate ownership and divorce: Is the sale the right solution for you?

If, after many years of marriage, two partners end up in divorce, this entails a number of emotional decisions. These include, for example, the distribution of the hitherto joint assets, which, in addition to money and furnishings, can often also include a property. To make the situation as smooth as possible for both parties, an amicable solution should be sought, for which a number of possible options are conceivable. Von Poll, your real estate agent in Upper Lake Zurich, would like to contrast these for you in the following article, in order to enable you to make an informed consideration of the future of your house or apartment.

The divorce agreement regulates the handling of real estate property after the marriage is over

In order to be able to determine how to proceed with the property in question in the aftermath of a divorce, it is first necessary to clarify the property claims. These can vary depending on the chosen property status of the marriage - depending on when the property was acquired, and whether a share of acquisitions, community of property or separation of property was agreed. In the case of joint real estate ownership, a agreement on the future of the house or apartment is necessary, which can be negotiated either in person or with the assistance of legal counsel. If both parties agree, the consensus is recorded in a written Divorce Agreement. If, on the other hand, no satisfactory solution can be found, the matter will be settled by a divorce court, but this should be avoided if possible in the interests of all parties.

Commonly, in the course of divorces in Switzerland concerning real estate, one of three typical scenarios occurs, which are associated with individual advantages and disadvantages. Let your real estate agent Von Poll Oberer Zürichsee explain these scenarios in more detail.

Scenario 1: The sale of the property. After a divorce often the procedure of choice

The house or apartment is offered for sale, after completion of the marketing, the earnings according to the divorce agreement among the former spouses split. This approach often turns out to be sensible not only from a financial point of view, but also enables both ex-partners to make a fresh new start without the emotional attachment to the formerly jointly occupied property, which can be associated with many memories. In this case, it is advisable to work with an expert real estate agent, who can realize the sale professionally within the shortest possible time and achieve the best result thanks to his or her comprehensive knowledge of the market, while the divorcees have to deal with the individual steps of marketing as little as possible. It should also be noted that not only both owners must agree to the sale itself, but also to the later negotiated terms of the sale.

Scenario 2: Payout by the sole owner if he or she wishes to retain ownership

The property on Lake Zurich Upper remains in the ownership of one of the two ex-partners, who financially pays out the other according to his or her existing claims. This option is considered, for example, if joint children live in the property and they are not to leave their familiar living environment. From a practical point of view, this option can also be preferable to selling, for example if the proximity to the workplace or the scarcity of comparable properties speak in favor of it. In this case, a prior analysis of the property value is necessary in order to quantify how much the future sole owner will have to pay out. However, since such a sum cannot be raised in the short term in every case, this decision may not be feasible in every divorce.

Scenario 3: Compensation of the real estate shares by awarding other assets

The house or apartment also remains in the possession of one of the two ex-partners - the difference to the second scenario is that this is not paid out financially, but is instead favored in the form of other counter-values from the formerly joint assets. This can include, for example, vehicles, works of art and furnishings, but also investments in the form of shares, fund units or precious metals. In addition, the advantages and limitations of this method are similar to those in scenario 2; this variant may be suitable, for example, if the sole owner does not have sufficient monetary resources to pay out, but still wishes to continue living in the property. Even with broadly diversified marital assets, this approach may be preferable to the traditional payout to the ex-partner.

For which of these possible ways you may decide after your divorce: Your real estate agent Von Poll Oberer Zürichsee will be happy to support you in your plans and answer your questions in a personal consultation. We will deal with your individual case in detail, determine the market value of your property precisely on the basis of current comparative values and, if desired, realize the sale of your house or apartment - efficiently and conveniently. Arrange free and unbinding your personal first appointment with our real estate agents by calling +41 44 211 60 09 or send us an e-mail to [email protected].