The redemption of money is to buy back the real estate share of his spouse, a procedure that can be carried out before the divorce.
Redemption of cash: principle
In the context of a divorce, the property that was acquired by the spouses must be shared, this is particularly the case of a property. The house or apartment bought together can be resold by both spouses but if one of them wants to keep it, he must then buy the other’s share, this is called the balance. The calculation of this balance will simply be based on half the value of the property and half of the capital still to be paid if a mortgage is still in progress.
The value of the balance can be defined by both spouses if they can agree, otherwise it is defined by the notary in the presence of the lawyers of both parties. This redemption of balance must be done at a notary, which allows to update the deed that defines the property rights to the property. Obviously, the steps that will be undertaken at the notary will incur costs, mainly related to the valuation of the property and the drafting of the new authentic act.
Proceed to the redemption of cash before divorce
The divorce procedure is not always a pleasant moment to pass because it is necessary to manage the division of the goods and in particular the question of the property bought in common. Proceed to the redemption of balance before the divorce is possible but it is necessary that the divorce is done by mutual consent, that is to say that the two spouses will agree on the modalities and in particular on the amount of the balance .
In this case, you must contact the notary to inform him of one of the spouses to buy the other’s share. After defining the amount of the rebate and repurchase by the spouse, the notary will write a notarial act specifying that the one who buys the part of the other becomes full owner of the house or the apartment. This is often the most difficult point to resolve, the divorce procedure will be facilitated for both spouses. It is obviously necessary that the spouse wishing to buy back the cash flow is able to do so.
How to finance the purchase of cash before divorce?
To buy a rebate, one of the two spouses can rely on his personal savings but the amounts of real estate are important, it will most likely be to finance consumption or real estate in order to buy the share of the other. In some cases, it is advisable to proceed with a credit consolidation because the operation will allow to collect the credits in progress and to finance a new project.
This makes it possible to settle outstanding loans and to start afresh on new financial bases, with the full ownership of the property for the spouse who buys the balance. The redemption will only be possible after an evaluation of the repayment capacity of the borrower, so it is advisable to carry out a feasibility study before filing a file with a bank. This simulation can be done online and for free.