Selling a home during a divorce or separation
Divorce first or sell the house first?
You do not have to wait to divorce until your home is sold. In an agreement or divorce settlement, you can make arrangements regarding the distribution of the proceeds and who may continue to reside in the home in the meantime.
Tip! In addition to residing in the home, costs such as the mortgage and maintenance will continue. It is advisable to make arrangements regarding these as well. You can also make agreements for a specific term, such as six months, so that you can review them if the house has not yet been sold.
Home equity when selling a house
After the sale of your home, the mortgage is paid off first from the proceeds. If there is money left over, this is referred to as home equity.
If you purchase a new home within three years of selling your house, you must take into account tax rules regarding the equity you use: the “bijleenregeling” (additional loan scheme). You must use your share of the equity when purchasing a new home. If you do not, you will not be able to deduct the interest on an amount equal to your share of the equity.
The equity is reduced by the costs incurred during the sale of the old house and the costs of purchasing your new home.
Are you going to rent? And will you only buy a house after three years? Then this does not apply, and you will again be fully entitled to mortgage interest deduction.
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Residual debt when selling a house
Our service goes further...
Our office works closely with Fload Hypotheken and a senior mediator from Scheiden met René.
Whether you want to continue living in the house or move to a new home, they are ready to provide you with professional advice. The first consultation is always free.