Divorcing is one of the most difficult situations to face and it is common for disagreements to be generated in the now ex-partner. For example, what to do with the family home: what happens if one of the spouses wants to sell it and the other party is opposed? Can the other be forced to close a sale?
Experts from the financial and real estate comparator HelpMyCash.com explain that there is a legal procedure, known as division of the common property, which requires the sale of the family home in the event of divorce, even if one spouse objects. In most cases, the sale is carried out by public auction and the conditions are not beneficial for either of them. In this context, the experts explain why reaching an agreement with the ex-partner is the most advantageous option.
A public auction implies that the highest bidder, which can be any interested person, acquires the house. The comparator experts estimate that the sale price in these cases is between 20% and 30% lower than what could be obtained in a conventional sale. “A house that, under market conditions, would sell for 250,000 euros, at a public auction would sell for between 175,000 and 200,000 euros,” they illustrate.
The party that does want to sell could also choose to transfer its part of the property to a company. This procedure is known as the sale of the joint venture, but the profits will also be less than the market price of the house. Indeed, they are usually between 35% and 50% lower.
But there is still more: the lack of agreement not only affects the spouses’ pockets, but also their time. A public auction sale can take more than a year, while a conventional sale can take between one and six months, depending on the location of the home and the price chosen. As for the sale of the joint venture, the time will depend on the interest that the companies have in acquiring the part of the property in question.
It is also worth mentioning that both procedures could further damage family relationships, an especially important point if there are children in common. “The procedure of division of the common thing implies the intervention of a judge and these processes are usually problematic and stressful,” the experts detail.
The sale of the joint venture, for its part, implies that whoever decides not to sell the home shares its property with the company that acquires the joint venture. This can be uncomfortable and cause conflict between the members of the ex-partner.
For all this, HelpMyCash experts stress the importance of reaching an agreement to sell the family home at market conditions. “This loss of time and money could be avoided if the spouses reach an agreement or if they request the intervention of a mediator to reconcile their interests,” they detail.
Also, in some cases, consulting with a real estate agency can help resolve disagreements.
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