Until the 2007 credit crunch easy borrowing allowed many of us to purchase our dream holiday home in the sun. However for many this has now turned into a negative equity nightmare. Added into the mix of trying to achieve a financial settlement in a marriage breakdown it becomes a ticking bomb that no wants to be left holding.
Many people undergoing divorce and separation give no proper consideration to the sale or transfer of a foreign property in their divorce settlement or the implication of the terms of any order on the parties concerned. It is merely bolted on to an agreement as an afterthought, resulting in unexpected consequences.
If you are going through a divorce or separation you or your solicitor should be considering many issues. These are just a few:
- Has the property been valued? You should get a formal joint valuation by an accredited valuer in that country.
- What taxes, fees and levies are payable on a transfer or sale and who will pay for them?
- Who will bear the burden of future taxes, levies and utilities and where will they find the funds to do so?
- What is the legal process for sale or transfer of the property in the country in question?
- If you are going to sell can the proceeds of sale be repatriated easily or even at all?
- Is the title of the property good? Have you borrowed against it or caused any other restriction on your ownership that could prevent a sale or transfer now or in the future?
- There will be foreign bank accounts. Balances and transactions must be checked any overdrafts balances must be dealt with.
The family law team at ORJ have the experience to assist you and these and many other separation issues with free initial advice to help you move forward with your life.
ORJ is a Legal 500 Top Tier firm and has Staffordshire’s leading matrimonial and family law team. Contact Pavneet Matharu, ORJ’s specialist divorce and separation solicitor on 01785 275376 for impartial advice.