When dividing the community during a divorce, the allocation of the house is often the biggest problem. Who will own the house and how will it be divided among themselves? A house is generally the most expensive purchase for a private individual. It is also the biggest problem in a divorce. The house is often jointly owned by both partners. People who are married (or registered partnership) under a prenuptial agreement or cohabiting may have recorded it differently. The house must be divided among the joint owners in the event of a divorce. Each half is not possible, so the house must be allocated to one of the two. This often sounds simpler than it is.
House was purchased on the basis of two incomes
If the house was purchased on the basis of two incomes, the house often has to be sold in the event of a divorce. The remaining partner must be able to bear the monthly costs in the future with one income. In addition, part of the income may go to alimony for the ex-partner. If one of the ex-partners wishes to have the house registered in their name, the bank must also agree to this. If it is not possible to finance the house with one income, the house must be sold.
Buying out ex-partner
If there is equity in the house, the partner who does not get the house in his name must be compensated. The ex-partner must, as it were, be bought out. In addition to the surplus value, the accrued capital in a linked life insurance policy must also be taken into account. The ex-partner who gets the house in his name could take out an additional mortgage to finance the buyout. Under certain conditions, the mortgage interest paid on this loan is tax deductible. It is also possible to compensate with other assets, such as savings. This must be recorded in the divorce agreement.
The house has no equity
Equity in the house must be divided, but a division will also have to take place if the value of the house is lower than the remaining mortgage on the house. In this case, the ex-partner who does not get the house in his name must compensate the other owner of the house for the fact that he or she takes on the debts. Until 2008, house prices continued to rise, but in 2008 a downward trend started that gradually caused more and more mortgages to become underwater. This makes the house unsellable without leaving any debts from the sale.
Was the house purchased with NHG?
A mortgage is often taken out under the conditions of the National Mortgage Guarantee (NHG). A premium is paid for this at the closing and in return the home buyers receive a discount on the bank’s mortgage interest. The NHG offers the bank additional security that debts can be passed on under certain conditions. In the event of divorce, it is possible to claim the NHG. If the conditions are met, the Stichting Waarborgfonds Eigen Woningen (executor NHG) will take over the debts. The residual debt is then paid from the fund.