Property division after divorce or in case of cohabitation agreement

When a relationship or marriage ends, it is an emotional and complex process. This process can be even harder when both parties own a property, such as a home or a business property. To divide these assets, a careful and legally correct approach is needed, and this can be done with a property division deed.

What is a property division deed?

When two owners of a home or business property separate, the ownership needs to be adjusted from two owners to just one. This is done through a property division deed. It requires the cooperation of both owners and the lender.

In addition, the excess value needs to be divided. The excess value is the remaining amount when you subtract the outstanding portion of the mortgage from the market value of the property. This often means that one partner needs to ‘buy out’ the other. Should that be financially impossible, it might be necessary to sell the property.

Why is a property division deed so important?

It’s important to make good arrangements to avoid ambiguity or doubt and to make sure that the division of assets is handled properly. This is important for the owners but also for the lender and other involved parties. A property division ensures that all the agreements are documented, removing any possible areas of ambiguity or doubt.

How does NKVDL do this?

We understand that it’s hard when two people separate. That’s why we want to make this process as easy and hassle-free as possible, with a clear property division deed.

1. Intake and covenant

Before we draw up a property division deed, you and your partner will provide a draft covenant. This is a document which contains the preliminary agreements. Usually, this document is drawn up by a lawyer or mediator. The covenant is essential for us to start.

2. Review and meeting

After you’ve provided a copy of the covenant, we will review it. Should any changes or additions be needed, we will schedule a meeting. If everything is clear, we will get started straight away and draw up the property division deed based on the covenant.

3. Signature

Once the owners and the lender, often the bank, are in agreement, we invite all parties to our office to sign the documents. This can also be done in combination with signing the mortgage deed.