Spouses often do not realize in advance that a divorce also has major financial consequences. It is not a matter of dividing the things and everyone going their own way. Even after the divorce, the ex-partners remain financially connected to each other. Breaking up a marriage is very difficult emotionally and financially. The financial damage in particular is often underestimated. People often realize that assets must be divided, but the consequences go much further. The former partners often remain obliged to support the other even after the marriage has ended. If children have resulted from the marriage, this applies even more.
Married with common ownership of property
Before a marriage is concluded, it is possible to draw up prenuptial agreements. For this it is necessary to have a notarial deed drawn up by a notary in which the marital conditions are recorded. If a marriage takes place without first having a notarial deed drawn up, it becomes a marriage in community of property. The individual assets are combined into one common property. In addition, the debts are also combined. When the marriage ends, the assets must be divided between both partners. In principle, everyone is entitled to half (there are exceptions, such as related goods and acquisitions under an exclusion clause).
Divide the assets and debts
After breaking the community, each person is entitled to half. How the partners want to divide the assets and debts must be recorded in the divorce agreement. Your own home is often an issue. If there is equity in the house, it must be divided. The ex-partner who gets the house in his name would have to buy out the other owner of the house. If the mortgage on the house is higher than the sales value at that time, a problem arises. The problem becomes even greater if one of the ex-partners cannot pay for the house alone. In this situation, the house must be sold with a residual debt. Both owners of the house are jointly and severally liable for this residual debt. A residual debt of tens of thousands of euros is not inconceivable.
alimony obligation
If there is a large difference in income between the two former partners, the higher-earning partner will probably have to pay alimony to the ex-partner. These expenses are tax deductible, but do entail additional costs. For any minor children, both parents must bear the financial burden. This means that the parent with whom the children stay the least must provide a contribution towards the costs incurred by the other parent.
Maintaining two households on the same income
After the divorce, both ex-partners must jointly maintain two households with the income with which one household was previously run. This means that they must be able to bear double burdens with their disposable income.
Divorce costs part of the pension
A divorce can have a major impact on the accrued pension. The ex-partner is entitled to half of the retirement pension accrued during the marriage. To restore this, capital will have to be built up outside the pension scheme.