Assistance of a real estate expert or taking the former mother-in-law to court?

The shared home is part of the joint assets of partners if it was created through joint efforts during the relationship. This means it was either purchased with joint savings accumulated during the relationship or acquired through a joint loan. If the property was a gift from the parents of one partner, or inherited by one partner, it solely belongs to that individual. If it was partially or fully purchased with the savings of only one partner, earned before the relationship, or with the proceeds from selling their own property, it is considered part or wholly owned by that individual as their separate property.

The shared home is part of the joint assets of partners if it was created through joint efforts during the relationship. This means it was either purchased with joint savings accumulated during the relationship or acquired through a joint loan. If the property was a gift from the parents of one partner, or inherited by one partner, it solely belongs to that individual. If it was partially or fully purchased with the savings of only one partner, earned before the relationship, or with the proceeds from selling their own property, it is considered part or wholly owned by that individual as their separate property.

Firstly, it's crucial to establish whether the property belongs to the joint assets. If the answer is no, then it's clear whose property it is, and who will be moving out after the relationship ends.

If the property was partly acquired through joint assets (savings or a loan) and partly through the separate assets of one or both partners, only the shared portion is subject to division. So, if the property cost €200,000, and each partner contributed €50,000 from their separate assets, while they took out a joint loan for €100,000, they now need to agree only on how to divide the loan. More about this follows in the continuation.

If we've set up our home in a house belonging to the parents or relatives of our partner, we are the ones who might have to pack our bags. We may take away a couch or a TV, or agree on reimbursement for the funds invested, and that's about it. We're slightly better protected, though, if we've renovated an attic, installed utilities, plastered, installed fixtures, etc., in our partner's parents' house. In this case, it may be considered that we've become co-owners of the property.

If it's undoubtedly joint property, the partners must decide whether to sell the property or have one of them buy out the other to become the sole owner. If they decide to sell, they need to agree on the selling price. They must also equally share the risk of a potential decrease in the selling price if it's clear that the property value has dropped since the purchase. However, the most challenging part is reconciling personal views on the amount of work invested in the property, the type of wood used for the stairs, or how well-maintained the garden is – there's no room for such romanticism in these situations. That's where the assistance of an experienced real estate professional, who knows the market and market prices of similar properties, can be very beneficial.

The appropriate payout amount or how the received purchase price is divided depends significantly on the contribution each former partner made to the purchase of the property or how much of the joint loan they repaid. If the contributions were roughly equal, the payout or division of the purchase price will be similar; otherwise, it won't. Financial contribution isn't the only factor here; the contribution to home care and family also matters.

But what about a mortgage? Banks typically feel no stress in case of a relationship breakdown: the former partners will still be equally liable for the obligations, and in case of delays or defaults in payments, the bank will demand payment from one, the other, or both partners simultaneously. If one partner stays in the property and assumes the mortgage payments, it doesn't mean that the other partner is relieved of the obligation towards the bank. The bank must explicitly or tacitly agree to the debt transfer; otherwise, it has no effect. Such situations add even more stress for the former partners. Often, only a miraculous new marriage or a slow response from the bank allows the issue of a joint loan to be resolved. Otherwise, the joint property might remain a shared burden for quite some time. It's a burden because the departed partner never knows when the ex-partner might stop making payments, which might hinder their ability to obtain a new loan, etc.

If the former partners cannot agree on whether the property is joint or not, or on each one's contribution to it, their last resort is the court. The court fees quickly exceed €1,000, and lawyer fees aren't much less. It usually takes almost a year from filing a claim to the first hearing, and it can take up to five years for a final decision.

If you don't like this scenario and don't want to meet your ex-partner or even ex-mother-in-law in court in the coming years, don't delay and ensure the assistance of a real estate professional in dividing shared properties. If you opt for a sale or another agreement on division, the professional will communicate with your ex-partner and their family, as well as potential buyers, and handle all the bureaucracy. Moreover, with their team of lawyers, architects, and surveyors, they won't forget details like clearing the land registry status, negotiating with the bank regarding the mortgage or surety, aesthetic improvements to the property, refreshing the interior, taking appealing photographs, establishing clear boundaries with neighbors – all these details create real added value, ultimately leading to a successful deal and a win for everyone involved.