Fixed costs during a divorce: who pays what?

12 October 2024
Picture of Arslan Advocaten

Arslan Advocaten

Need help urgently?

Choose a location

Fixed costs during a divorce: who pays what?

During a divorce, both partners often remain responsible for paying the fixed costs, such as the mortgage or rent, until definitive agreements have been made. Whether it’s a bought or rented house, it’s important to know how the payment obligations are distributed. In this article we provide an overview of the rules and possibilities for both bought and rented houses during a divorce.

1. Owned house during divorce

If you jointly own a house, both partners are legally responsible for the mortgage until the property is officially divided. There are three possibilities:

  • Selling the house: You can decide to sell the house and divide the profit or outstanding debt. Both parties must continue to pay the mortgage until the sale is finalised.

  • Taking over the house: One of the partners can buy the other one out and put the house in his/her name. The partner who stays in the house is then fully responsible for the mortgage. Until the buyout process is legally completed, the original mortgage remains applicable to both parties.

  • Temporary agreements: It is common to make temporary agreements about who pays the mortgage during the divorce process, especially if one of the partners continues to live in the house.

When it comes to a bought house, it is essential to reach agreements quickly, as the financial burden can be very high. As long as the mortgage is in both names, both partners remain liable.

2. Rental property during divorce

Different rules apply to rental properties. The responsibilities depend on the rental contract and who is listed on it. The following situations may occur:

  • Joint rental contract: If the rental contract is in both names, both partners will remain responsible for the rent until the contract is changed or terminated, even if one of the partners leaves the house.

  • Rental contract in one name: If the rental contract is in one of the partner’s name, that person remains responsible for the rent. The other partner has no legal obligations, but temporary agreements can be made.

  • Allocation of the rental property: In some cases, the court may decide who can continue to live in the rental property, for example, if children are involved. The partner who looks after the children might get the right to stay in the property while the other partner leaves. The tenant remains responsible for paying the rent.

Agreements during and after the divorce

Whether it is a bought or rented house, it is important to make clear agreements about the distribution of costs during the divorce. These agreements can be recorded in a divorce agreement. If you cannot reach an agreement, the court can determine who is responsible for what payments until the divorce is officially finalised.

In addition, it may be necessary to agree on alimony or other financial compensation, so that one of the partners isn’t left with disproportionately high costs. This could also be recorded in the divorce agreement.

Need help?

If you have questions about the distribution of fixed costs during a divorce or need help drawing up a divorce agreement, the family lawyers of Arslan Lawyers are here to help you with a fair and careful settlement of the divorce. Contact us for free advice.

Share this message

Facebook
Twitter
LinkedIn

Categories

Familierecht

Recent Posts

Popular Tags

Advocatenkantoor

Need help urgently?

Choose a location