Divorces by mutual consent – the divorce settlement agreement makes it possible

Contentious divorces often lead to unwanted results and problems in families. Especially when joint children are involved, it is probably advantageous for all to settle the messy topic of divorce quickly and easily. Consensual divorces with divorce settlement agreements help and settle all important issues in advance. But what are the limits of these agreements, what can they regulate and what form do they need?

• Tip. Our guide for house and apartment: Selling real estate after divorce.

The most important at a glance:

• The divorce settlement agreement attempts to settle all possible points of dispute in advance of the divorce in order to make the divorce as simple as possible. These include, for example, maintenance, custody of the joint children, the procedure with joint assets or even the continuation of the joint family name.
• A divorce settlement agreement does not require a certain form, however, it is recommended to choose the notarization by a notary or the court record, since both can be used as evidence in case of dispute.
• The benefits can be used primarily by couples who desire an amicable divorce. However, divorce settlement agreements are not suitable for contested divorces or divorces that are desired by only one spouse
• The agreement on the consequences of divorce must not unreasonably disadvantage either spouse and is subject to a judicial review of its content, which can declare such provisions to be invalid.

The content – this can be regulated in a divorce settlement agreement

In a divorce settlement agreement, all things concerning the marriage and the divorce can be regulated. In general, this agreement regulates how joint assets, joint children or similar things will be dealt with after the divorce. It is attempted to clarify all points that are normally settled during the divorce in advance, in order to make the divorce as simple as possible. To a divorce succession agreement belong in detail things like the maintenance. Here, both the separation maintenance for the period from the separation to the divorce and the post-marital spousal maintenance for the period after the divorce can be regulated.

The divorce settlement agreement also regulates the custody of joint children, their maintenance and, if necessary, the right of access for the non-caring parent. In addition, the divorce settlement agreement will specify how joint assets, such as the joint home or household effects, are to be dealt with. Other possible points of a divorce settlement agreement are the agreements on the equalisation of gains, exclusion of the legal matrimonial property regime of the community of gains and agreement on the separation of property, the waiver of the right to inheritance and the right to a compulsory portion and the continuation of the joint family name.

• The divorce settlement agreement attempts to settle all possible points of dispute in advance of the divorce in order to make the divorce as simple as possible.
• The possible aspects of a divorce settlement agreement include, for example, maintenance, custody of the joint children, the procedure with joint assets or also the continuation of the joint family name.

The form – this must be observed

A divorce settlement agreement is only legally valid and binding if it has a specific form. An oral or private divorce settlement agreement is only valid as long as there is no dispute. If the statements made in the divorce do not match the document, it cannot be used as such. If you decide on a divorce settlement agreement, it is always advisable to have it notarized. This ensures that the agreement is legally binding on both parties and can be used as evidence in the event of a dispute. A notarized divorce settlement agreement is therefore the cornerstone for a quick and amicable divorce.

Alternatively, the divorce settlement agreement can be recorded orally by the court at a hearing. This alternative is also legally binding and guarantees its validity in court. In case of doubt, both documents can be used for compulsory enforcement against the spouse, e.g. to collect spousal maintenance.

• A divorce settlement agreement does not require a certain form and can be made verbally, in writing, notarized or verbally recorded in court.
• It is recommended that the contract be notarized by a notary public or recorded in court, as both can be used as evidence in the event of a dispute.

The pros and cons – a divorce by agreement

The advantages of a divorce settlement agreement are obvious. The law gives spouses a great deal of leeway in these agreements to settle all issues related to the divorce amicably among themselves. In this way, it is possible to divide the assets between them as fairly as possible, to determine the maintenance claim or even the custody itself and thus to pave the way for a tension-free and as factual as possible dealings with each other. This is especially important for joint children, who often find themselves in a conflict of loyalties during contentious divorces, which often leads to tension in the family. The advantage of an amicable divorce is also the low court and attorney fees. Contentious divorces require more time, more lawyers, and therefore more costs. To avoid this and avoid unpleasant disputes with your spouse, a divorce settlement agreement can make divorce by mutual consent simple and straightforward.

There are hardly any disadvantages with a divorce settlement agreement. However, one should always bear in mind that disputes and disagreements can arise even when drawing up a divorce settlement agreement. Especially in marriages that break up unhappily or only one party wants a divorce, a divorce settlement agreement can often not help. These agreements require that both partners are willing to discuss divorce issues by mutual agreement and are not only willing to take, but also to make concessions.

• The advantages can be used especially by couples who want an amicable divorce
• Through the divorce settlement agreement, all issues related to a divorce can be clarified privately
• However, divorce settlement agreements are not suitable for contested divorces or divorces that are desired by only one spouse

The limits – unreasonable disadvantage to one spouse

Even a divorce settlement agreement has limits. Although it may regulate everything connected with the divorce, it may not unreasonably disadvantage either of the spouses. The agreement is therefore subject to a judicial review of its content and can be declared invalid in the event of inappropriate provisions. Which provisions are ineffective is determined by the court in each individual case. An unreasonable disadvantage of a spouse is assumed, for example, if he or she will foreseeably be dependent on social welfare as a result of the agreement, or if, for example, parental custody and access rights are commercialised, i.e. access rights would be made dependent on financial benefits. With regard to these limits, there is no precise guideline as to which scenarios could lead to an ineffective agreement, as these always depend on the respective situation and are decided by the respective competent court.

• The agreement on the consequences of divorce must not unreasonably disadvantage either spouse.
• Such provisions may be declared invalid by the court
• The divorce settlement agreement is subject to a judicial review of its content

Divorce: guide, help and tips

Divorce is complex, it’s true. But you are not alone! Many let themselves separate and in fact, a large part always finds a good solution. Only a small part ends in a quarrel. So that you can prepare well, you will find here our small guides and tips on divorce, family, money and real estate.

• Divorce: Guide

Prevent foreclosures – The options

As soon as one has been informed about a foreclosure, the worries and fears are great. From many quarters in this situation comes the phrase, “You can’t stop a foreclosure.” But how hopeless is this situation really? What options are there to fight the foreclosure proceedings? We have listed 4 options for you that may be able to help you.

The way out of the foreclosure – negotiations with the bank

Keep calm and consider what course of action would be best for you. The best way to escape foreclosure is to negotiate with your bank. Not only does your current financial situation play an important role, but the forecast of your future financial situation also plays an important role. A bank will only be interested in agreeing to a new deal if there is a good chance that the installments will be paid on time in the future. It is particularly important that you act in good time when you learn of the enforcement proceedings.

Deferment of installments

This option is recommended exclusively for people who can say with certainty that they will have more money available again in the future. The core of this option is the deferral of the installments. A deferment means the suspension of one or even several loan installments. The bank will agree to this option only if there is an improvement in the financial situation in the future.

Reduce or suspend the repayment rate

One way to prevent the foreclosure of your home is to reduce or even suspend the repayment to be paid. To make this option a reality, you should talk to your bank. The likelihood that they will agree to a new arrangement with you is not that small, as the bank often does not benefit from a foreclosure either. This procedure is particularly useful if it is foreseeable that you will have more money available again in the future.

Reschedule

Another possible option in the event of an impending foreclosure is to reschedule. Rescheduling means taking out a new loan to pay off an old loan. Rescheduling only makes sense if you have to pay less interest on the new loan than you did on the old one. It is important to constantly try to reduce your interest costs. You can take out a new loan with the same bank or with any other bank.

If you have actually managed to do this and have reached a new agreement with your bank, it makes sense that you still try to cut back a little in your everyday life and save money so that you can fall back on your savings in financial bottlenecks. You can save in a wide variety of areas of your life. From getting rid of your own car and switching to public transportation to comparing and switching electricity providers. Here we have an article for you that deals with the topic of “saving”:

Read also:

• Foreclosure explained
• Online portal and local court list
• Foreclosure Submission
• Receivership
• Compulsory mortgage
• Tip! This is how an auction works (external): Compulsory auction procedure

Saving: Advisor and Financial Check

First of all, it is important to have a stable basis. You must always keep an eye on regular and one-off expenses. Our guidebook provides valuable tips and tricks for creating a solid financial basis step by step.

• Saving advisor: Financial Check
• Saving in everyday life (14 tips for investing)

We also have many individual areas where a lot of money can easily be saved. Every week, every month, so that a solid financial basis is getting closer and closer:

• Save subscriptions
• Save Shopping
• Save Driving
• Save free time
• Saving budget
• Save Travel
• Save electricity
• Save relocation

Investing: Investments

With stable financial resources, it is then particularly worthwhile to think about your first investments, so that your money – passively – works for you.

Forced sale quickly explained – procedure, tips & tricks

If you don’t like to read long explanations about the procedure of a foreclosure sale or about the tips and tricks, we have put together some videos for you in which these topics are explained in an understandable and good way.

Read also:

• Foreclosure explained
• Online portal and local court list
• Prevent foreclosure
• Foreclosure Submission
• Receivership
• Compulsory mortgage

If you want to participate in a foreclosure auction as a bidder or you are facing the foreclosure of your own property, the first thing you ask yourself is how such a procedure actually works. The procedure is always the same and firmly regulated. In this video you will learn the exact procedure of a forced sale. Claus Roppel explains the procedure in such a way that it is understandable for every layman. So that it comes at all to the enforcement proceedings must first be given certain enforcement requirements.

The conditions for enforcement

• Title – a document, a court judgment or an enforcement order that determines the claim to be enforced.
• Clause – Official note of enforceability
• Service – the title must have been served on the debtor before or at the time of the commencement of enforcement proceedings

In this video Christian Schmitt explains which things should be considered when participating in a foreclosure auction and he gives helpful tips and ticks.

Bargain hunting at foreclosure sale

If you’re still unsure about whether you should attend a foreclosure auction, you might find this video helpful. Are bargains common at a foreclosure auction, or do you usually pay the going rate, or even more?

This video is about tips that might help you prepare for a foreclosure. It makes sense to watch the event several times before attending a foreclosure auction yourself. You can find the dates of foreclosure auctions either on websites, such as Zvg24 or in the notice boards of the relevant local courts. Most bidders go to a forced sale with the aim of getting a bargain. But to achieve this goal, you should prepare well for the foreclosure auction.

Opportunities & Risks

In this video, you’ll learn more about the opportunities and risks involved in a foreclosure. Here are 4 things you should definitely consider before you participate in a foreclosure auction:

1. Review market value appraisals
2. Examine land records
3. Note the file number of the object to obtain even more information
4. If possible, arrange viewing appointments

Risks of a forced sale – You should be aware of these risks

Of course, there are certain risks involved in a foreclosure. A foreclosure involves risks that you should definitely be aware of. Here we have compiled possible risks for you so that you can prepare yourself for the situation in the event of a foreclosure.

Personal viewing rarely possible

Before participating in a foreclosure auction for a property, it is important to obtain sufficient information beforehand. Unfortunately, it is rarely possible to inspect the interior of a property in advance, as the occupant does not have to allow any insight into the interior. For this reason, possible damages or defects often only appear afterwards.

Existing tenancy must continue to exist – unless own need

If you buy an already rented property at an auction, you automatically become the landlord and have no right to terminate the tenancy, unless you need the property for your own use. You are therefore bound to the tenants to a certain extent.

Bidder offers more than financially possible

At a foreclosure auction, there is always the risk of falling into a so-called “bidding frenzy”. If the desire to buy the property at auction is particularly great, the risk of getting into such a situation increases. The active bidders drive each other up and do not notice it sometime that they have already arrived at the limit fixed by themselves before. Through this happening it can happen that one drives oneself into a financial ruin. Once a foreclosure sale has been concluded, there is no longer any right of withdrawal.

No warranty on construction defects

If you have managed to buy a property at auction and afterwards construction defects occur, this is particularly annoying. The disadvantage of a forced auction is that there is no warranty on construction defects.

After watching these videos, you should know enough about the process, tips and tricks. Still want to learn more about the foreclosure process? Then you can learn more here:

The partial auction for communities of heirs

Objects such as real estate or land often give rise to disputes in communities of heirs. The ideas of how to proceed with the common property are too different and the participants cannot agree. Every heir has the right to demand a partition of the community of heirs at any time and thus to force its dissolution. In such a case, a partition auction may be the last resort to settle the disputes and dissolve the community of heirs. You can find out here what needs to be taken into account in the event of a dispute and a partition auction.

Learn more about communities of heirs!

Application for partition auction – the correct form must be observed

An application procedure always precedes a partition auction. This application can be made by any heir of a community of heirs. Formally, a written application, which must be submitted to the competent district court, is sufficient. However, it must be accompanied by certain documents. In the first application, it must be proven beyond doubt that the applicant has co-ownership of the property to be auctioned. The appropriate document is a corresponding extract from the land register, which must not be older than six months. Once the application has been received, it is examined by the local court and the next steps are initiated.

Partition auction & community of heirs – Video

The procedure – step by step to the partition auction

The process of a partition auction already begins with the application that one of the heirs from a community of heirs must file with the district court. This is followed by further steps in order to carry out the partition auction in accordance with the law.

The expert opinion – assess the value of the property

A partition auction requires an appraisal of the value of the property or land. The court needs this in order to determine the lowest bid for the partition auction. Such an appraisal can be obtained in three different approaches. The petitioner can obtain a private appraisal, but the entire community of heirs must agree to this step. An alternative is to obtain the appraisal through the court. Often a valuation report is already available. As long as this is not older than a few weeks or months, it can also be used.

The minimum bid – determined by the court

The court sets a so-called lowest bid before the partition auction to ensure that the proceeds of the partition auction can cover the costs of the proceedings and all claims of the heirs. Once this is determined, neither the market value nor the purchase price of the property or land is relevant and the lowest bid is considered the notional value. It is made up of the rights, encumbrances and minimum cash amounts. The person who acquires the property or land at the partition auction assumes all rights and encumbrances in addition to the subject matter and thus becomes the purchaser and debtor.

The auction – the highest bid gets the surcharge

Once the lowest bid has been determined by the court, a date for the partition auction can be set. Subsequently, the partition auction of the property or the land should be advertised in newspapers and on the Internet in order to attract interest in the property. Viewing appointments are also possible in consultation with the community of heirs. On the auction date, all interested parties can submit bids within a predetermined time frame. The highest bid is accepted for the property and the community of heirs may be divided.

The duration – varies from case to case

The duration of a partition auction is different depending on the case. It depends in particular on how long it takes to prepare the expert opinion and how long it takes to process the application. The applicant can only shorten the duration by already having a valuation report available when filing the application and the court agrees to its use.

The disbursement – dispute of the community of heirs

The community of heirs does not successfuly dissolve until the proceeds have been successfuly distributed. Disputes can also arise here. If the testator has not determined the distribution in his will, the statutory inheritance quotas usually apply. If the heirs do not agree, a civil action may be brought. The proceeds from the partition auction are deposited with the district court and are not paid out until the heirs have reached a written agreement on the distribution.

The costs – how much are they and who bears them?

Certain costs are incurred for a partition auction. These include the application costs, the procedural costs, the expert’s fees, the lawyer’s fees and the costs for newspaper and internet advertisements. All these costs are incurred when the court orders a partition auction. The costs for the notification of the co-heirs are part of the application costs. Usually, the costs of the proceedings have to be paid as an advance. Who bears the costs of a partition auction depends on the outcome of the auction. If the auction is successful, all costs will be deducted from the proceeds and thus each heir will share equally in the costs. However, if the auction is not successful, the applicant bears the costs alone and the community of heirs continues to exist.

The alternatives – private sale or voluntary auction

The partition auction involves some risks that should be well thought out in advance. The property could be sold below value and lead to low profits for the heirs. There are some alternatives that eliminate these risks. The property can be sold privately, saving the application, procedural and legal fees. In addition, the heirs can choose the buyer themselves and thus ensure that the property is not sold below value.

Another alternative is the voluntary auction. The community of heirs can turn to a public auctioneer who organises and conducts an auction. The advantage here for the heirs is that the minimum bid can be determined themselves and thus there is no risk of an auction below value. However, in both cases the community of heirs must unanimously agree to the sale of the property.

The most important questions on the subject of partition auctions in communities of heirs

A partition auction can resolve disputes within a community of heirs, but it can also reignite disputes. To avoid mistakes and save time, it is important to take the right steps. Lukinski’s experts answer the most important questions on the subject of partition auctions in detail for you.

Why a partition auction?

A partition auction can put an end to long disputes, especially in communities of heirs, and lead to a result with which all heirs agree. The partition auction also offers the last resort if no agreement can be reached.

What does for the purpose of abolishing the community mean?

The partition auction success for the purpose of the abolition of the community around from an indivisible article, like a property or a real estate a divisible money equivalent to generate.

What is a partial auction of a house? More terms in our property glossary.

A partial auction is held when several people are co-owners of a property. The partial auction turns an indivisible object into a divisible amount of money that can be divided among the owners.

What does § 1010 BGB mean?

Pursuant to § 1010 of the Civil Code, the co-owners of a plot of land may make arrangements for the administration or use of a plot of land or exclude the right to demand the dissolution of the community.

What did ZVG mean?

The abbreviation ZVG stands for Zwangsversteigerungsgesetz. This regulates both the forced sale and the forced administration.

Compulsory mortgage at a glance: Compulsory registration of a mortgage in the land register

• Registration of a mortgage in the land register by foreclosure
• Is also considered a security mortgage, but is not contractually agreed and is only entered in the land register in the course of compulsory enforcement.
• Allows foreclosures and benefits for the creditor
• Advantages include: Creditor’s participation in foreclosure, receipt of share of proceeds and obtaining the right of redemption.

Read also:

• Foreclosure explained
• Online portal and local court list
• Prevent foreclosure
• Foreclosure Submission
• Receivership
• Tip! This is how an auction works (external): Compulsory auction procedure

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