During the division of the property, the issue of the shared apartment must also be taken into account, what will you do with the mortgage, who pays what part and in general, what do you do if you decide to sell the apartment (when to sell, who stays in it and more).
Among most couples, the property dispute is not about a set of porcelain utensils or a vase, but about much more valuable items. These items are in most cases, the house or apartment you purchased together at the beginning, or during your marriage. Therefore and given the probably highest value, of all the items to be divided, arguments often arise around the subject during the separation. If you made a prenuptial agreement before the marriage, it will be much easier to manage the division of property, since everything is anchored in an agreement that you both have signed. If you do not have such an agreement, and there is no agreement between you on the use of the property, its sale, or payment for it, you will have to get the help of the law, i.e. the court.
There are 2 ways to divide an apartment in a divorce
The house is divided according to the law, and there are two ways to solve it. These ways are the rule of sharing or balancing resources:
Sharing rule – applies to couples who married until 1974. This means that couples who married up to this year and purchased an apartment, will have to share the mortgage payments equally. This applies to any debt that remains open, and not just mortgage debt. Of course there are reservations here too. For example, if the property is registered only on one of the spouses and the mortgage was taken before the marriage and the other party has no ability to prove intent to share the property, the payment for the mortgage will apply to the party in whose name the property is registered only.
Resource Balancing – This arrangement applies to couples who have been married since 1974 onwards. The court may determine the distribution of the mortgage burden, at its discretion. In this way you may be a full partner in the mortgage payments, or the court will rule that one party will pay a higher amount or maybe even the full amount of the mortgage, and the other party will not pay it at all.
Dissolution of a partnership in a property
In the event of a divorce, each of the spouses can apply for the dissolution of the partnership in the asset. In such a case the court has the power to determine whether to register the mortgage in the name of one of the parties or to sell the property. The court can also take into account the housing problems that one or both parties have and delay the sale of the property, until a housing arrangement is found for the children, since in the eyes of the court, the best interests of the children is the sole consideration.
Since the mortgage is a loan given for the purpose of purchasing a residential property, the mortgage bank must receive updates regarding the divorce and approve the transfer of the mortgage in the name of the recipient of the ownership. It is recommended to approach the bank during the drafting stages of the agreement, to ensure that the bank gives consent in principle to transfer the mortgage to one party. The bank may refuse to do so and then the couple will have to find another solution.
Divide the apartment wisely Division of real estate in the event of divorce affects any loan taken to purchase the property. Also involved are guarantors who signed the loan, the bank check of the earning and repayment ability of one party and exercising its discretion whether to approve it or not, etc. Therefore, in situations where the issue of real estate arises, it is very important to consult a professional who will accompany the process and shed light on the issue, both to protect the interests of the couple and to prepare in advance for the bank’s answers. A family and divorce lawyer will be able to accompany you and prepare you in advance for all the options available to you regarding the division of the property you own.
