Liabilities in an Property
The division of property begins when at least one of you requests it. The law does not define when this must or should happen, but it is often easiest and best to do it as soon as possible. If you agree on everything, you sign a property division agreement and that’s it! Then neither a lawyer nor a lawyer is needed.
Compile assets and liabilities in an estate register if you find it difficult to keep an overview of all property and all debts or if you are not completely in agreement, it will be appropriate to make an estate inventory. It is a list of each party’s assets and liabilities on the cut-off date. The cut-off date is the day the divorce application (application for divorce) was received.
In the case of a cohabiting relationship, it is the day on which the relationship ended. In case of death, it is the time of death. Spouses share matrimonial property. Individual property is not divided. Any individual property is that which is defined by prenuptial agreement, deed of gift or will.
Cohabitants share cohabitation property, which is housing and household goods that you have acquired jointly. It doesn’t matter who paid. In both cases, personal gifts and objects are considered to be things that are not included in the division of property. However, exceptions to that rule can be made for particularly expensive items.
Property is valued at market value. Sometimes it is relatively easy to assess the value, for example what a house is worth, or how much the shares or the money in the bank are worth. Other times it’s more complicated. If one or both parties have ownership in an unlisted company, you may need to carry out an independent company valuation to find a fair value for the shares as there is no known market value to rely on.
When you have a list of assets and liabilities for both of you, it is time to calculate the respective share. The starting point is that you should divide the matrimonial property equally after each spouse’s debts have been deducted. Only debts arising from matrimonial property are included. For example, if you have borrowed privately to a company that is privately owned, you may not deduct this debt from the calculation. This is how it works your and your partner’s assets are counted separately, one at a time. Then the debts for each are deducted. Then add up what’s left, that is, the net for you and your partner. The value is then divided by two.