The keys to selling a house in case of divorce

During the first quarter of 2021, 5.7% more divorces were registered in Spain than in the same period of the previous year. Between July and September,  20.127 marriages were dissolved by divorce, both consensual and non-consensual, with a percentage of them being joint homeowners.

Divorce is an emotionally complicated process, but if assets of high economic value such as houses or flats are involved, everything can become an ordeal.

For these reasons, at Porfinca we have created this guide with advice and important points for selling your house in case of divorce.

What you should take into account before the sale

Do you have common children?

In the case of having common minor children, the sale of the property must be authorized by a judge. Consensus between the two parties alone is no longer valid; in this case, one has to resort to legal proceedings looking especially after the interests and well-being of the minor.

If one of the two parties wants to stay in the home, the use of it is granted to the party that gets the custody.

Are you married in community of property?

In these types of marriage, the couples share equally all the properties acquired since they were married.

Upon divorce, these joint assets should be divided equally. In most cases, a liquidation of marital property before a notary is carried out; this in order to assure an equal distribution.

If the wish is to sell the property, the two parties would have to agree to sell it. Another option is that one of the parties buy the other half.

Did you sign a property agreement?

Having signed a separation of assets, each member of the couple owns their part of the house. In this case there is no need to make a distribution or decide who belongs to whom.

If the house is in both names, both parties must agree to sell, rent or keep the property.

What happens if one of the two parties wants to keep the house? In this case they could carry out a condominium extinction.

The Civil Code allows one of the parties to hold 100% of the property if he/she financially compensates the other party for it. This option represents important tax advantages. Tax percentages do not exceed 1%, compared to the sale of the home that would be subject to (higher) income tax and municipal capital gains.

Do you have a de facto relationship?

In the case of co-ownership, the couple has the option of selling the house to a third party and sharing the money, or that one buys the other’s part.

Do you have a joint mortgage?

If the mortgage is paid but still appears in the property registry, we recommend that you process the cancellation before selling the house.

If the mortgage has not expired and the two parties want to sell the house to a third party, they can use the money obtained to liquidate this mortgage and share the profits as appropriate.

Tips for selling a house during a divorce

Sell before divorcing

Mutual consensus is the best way to set an optimal selling price and carry out all the procedures efficiently between the two parties.

Agree who pays the property expenses until sales

A property generates expenses; these must be taken into account while the property has not been sold yet. Being clear about which party will take charge of the expenses is essential for an efficient transition.

Choose a trusted real estate agent

At Porfinca we are experts in the local market of the Costa Brava; we have qualified professionals who will value and sell your house at the best possible market price. We want to find a buyer for your property quickly so that the divorce process is as bearable as possible. You can request a detailed valuation of your property in our web-form; we will contact you as soon as possible.