The price of staying in your own home.

What is the purpose of a balance?

When you're a couple (married, civil union or cohabiting) and you buy your family home jointly, it's often subject to joint ownership. Each person's ownership of the property depends on his or her financial contribution at the time of purchase: 50/50, 40/60... In the event of separation, it is possible to sell the property and then share the sale price. However, it may happen that one of the spouses wishes to keep the property. To do so, he or she will have to buy out the other spouse's share. This financial operation is called a "soulte" buy-back. In this case, the amount of the balance corresponds to the value of the spouse's share of the house.

How is the balance calculated?

The calculation of the balancing payment depends on the undivided property, and in the case of a separation, the matrimonial property regime must also be taken into account. The first step is to have the property appraised by a professional. You can also proceed amicably, but the valuation of the balance may be a bone of contention. In the event of separation, there's no point in "pouring oil on the fire"! This is why it's a good idea to call in a neutral, independent real estate expert. The purchase of the balance of payments, both real estate and financial, is a notarial deed. So you'll need to make an appointment with your notary to put everything in place. The amount of the balance will vary, depending on whether or not you have an outstanding loan (which would have been taken out to purchase the property). Your bank must provide you with the amortization schedule to determine the outstanding capital on the loan. You then have all the information you need to calculate the amount of the balance to be paid in order to become the sole owner.
The formula is as follows: amount of the balance = (value of the house / 2) - (outstanding capital on the loan / 2)

And the costs?

The purchase of the balance is a notarial act. The deed costs will be borne by the two former spouses. The deed will be published at the land registry office.

Case study

Mr André and Mrs Bernard are separating. They own a house which is 50/50 divided between them. The property was valued at €300,000. At the time, they had taken out a loan to buy the property. Today, the outstanding balance on the loan is €150,000. Mrs Bernard wants to keep the property. She will therefore have to pay a balance to Mr André.
Half the value of the property: 300,000 / 2 = €150,000
Deduct half the balance of the loan: 150,000 / 2 = €75,000
Balance due: 150,000 - 75,000 = €75,000
Mrs Bernard will have to pay Mr André a balance of €75,000. She will also have to continue repaying the loan on her own. Mr. André, for his part, will have to ask the bank to disassociate him from the loan, so as not to be sued if Mrs. Bernard fails to repay the instalments. It is possible to borrow from your bank to finance the purchase of the balance.