Selling Property in a Divorce or Separation
In a divorce there are three usual routes for the shared home: sell it to a third party and split the proceeds, have one partner take full ownership through an extincion de condominio (joint ownership dissolution), or keep it in co-ownership. Each option has different tax implications. We manage the sale neutrally for both parties, from valuation to completion.
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Your options for the shared home
Sale to a third party and split of the proceeds
The most common option: the home is sold at market price and each owner receives their share according to their ownership percentage. It requires the agreement and signature of both.
Joint ownership dissolution (extincion de condominio)
One partner acquires the other’s half and keeps the home. In Catalonia this transaction is taxed under AJD (stamp duty) rather than ITP (property transfer tax), which makes it more tax-efficient than a sale between the parties.
Outstanding joint mortgage
Selling does not by itself extinguish the debt: it is settled from the price at the notary. If one partner keeps the home, the bank must accept a loan novation to release the other borrower.
Use of the home awarded to the children
If the divorce agreement or the judge awards the use of the family home, that right limits a sale in practice even though ownership remains shared. It is worth assessing before deciding.
Disagreement between the parties
If there is no agreement, either co-owner can apply to court for a forced division of the joint property, which usually ends in an auction at a worse price. An orderly, agreed sale is almost always better for both.
Selling before or after the divorce
You can sell at any time if both owners agree; there is no need to wait for the court ruling. What matters is documenting the split and coordinating it with the divorce agreement.
Neutral handling for both parties
In a separation sale, the agency cannot side with one party against the other. We work through a single point of contact or with each of you separately, as you prefer, with an objective valuation based on market data, identical information for both owners and the split of the proceeds coordinated at completion. If time is pressing, our network of active investors and buyers can shorten the timescale.
Active investors and buyers
Comparable offers: you decide
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How we work
- 1Objective valuation based on market data, shared with both owners
- 2Review of the situation: mortgage, ownership regime and divorce agreement if there is one
- 3Sale with full marketing, or presentation to investors if speed is the priority
- 4Completion and split of the proceeds coordinated at the notary, with the mortgage settled if there is one
Frequently asked questions
Yes. The sale only requires the consent and signature of all owners, regardless of where the divorce proceedings stand. In fact, many couples sell before the ruling to simplify the divorce agreement and split the proceeds directly.
It is the transaction by which one co-owner acquires the other’s share and keeps 100% of the home, compensating them in money. In Catalonia it is taxed under AJD (stamp duty) on the value of the share acquired, instead of the ITP (property transfer tax) that a sale would attract, which makes it more tax-efficient between ex-spouses. It requires a notarial deed and registration at the land registry.
Nobody is obliged to remain in co-ownership: you can ask the court for a forced division of the joint property, which normally leads to a public auction of the home. It is the slowest route and usually achieves the worst price, so it is almost always better to negotiate an orderly sale or a joint ownership dissolution.
If you sell to a third party, the outstanding debt is settled at the notary from part of the price and both of you are released. If one partner keeps the home, an agreement between you is not enough: the bank has to accept a novation of the loan to release the departing borrower; until it does, both of you remain liable for the debt.
Each owner is taxed on their share: the plusvalia municipal (municipal capital gains tax) and any capital gain on the income tax return are split according to the ownership percentages. The sale of what was your main home may qualify for the general income tax reliefs, such as reinvestment in a new main home, which should be reviewed case by case.
Do you need to sell due to a separation?
Objective valuation, identical information for both parties and full management through to the split of the proceeds at the notary. Reply within 24 hours.
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