When you get married, you choose to officially share your life with your partner. This does not automatically mean that you also choose to share all your belongings with this person. Nowadays you no longer automatically marry in community of property. How does that work with buying a house and getting married?

Building a home? Evaluate your material costing. You can check out roofing prices Toronto for your roofing needs. If you are newlyweds and decide to purchase a lot to build your home, the same marriage in community of property could be applied. Every situation is different, so you may want to speak to your lawyer before tying the knot in marriage.

Marriage In Community of Property

Until 2018, when you got married, you automatically shared your assets and debts. But this was no longer of this time, politicians thought. Because this also includes the pennies from your first piggy bank. Do you agree with these marital conditions? It’s possible, but registering this at the notary will cost a lot of extra money.

Marriage conditions for everyone

Since 2018, every new marital commitment is made on the basis of a limited community of property. Because not every bride to be is busy with it, but whether or not to divide property is of great importance in a marriage. Do you want to get married in full community of property? Then you must state that separately and arrange it with the notary. So the other way around! But what about a house for sale?

Union in all assets and debts

If you marry in community of property, you share all assets, but also debts. A purchased house is automatically from both of you, just like the mortgage debt. It does not look at who bought the house at the time. After all, what belongs to you belongs to your partner and vice versa.

Marriage and owner-occupied home without community of property. This has been the new standard since 2018. With this option you choose to officially share your life, but not automatically (all) your possessions. So also your house and mortgage debt. Do you want that? Then have this recorded separately at the notary. All debts and assets that you have accumulated or purchased together fall under your joint good.

Share ownership or not? Decide for yourself. This amendment to the law is intended to prevent one of you from giving up half of your assets in the event of a divorce, without considering it when you got married. In addition, it is prevented that, in the event that one of the two dies, the remaining partner does not automatically have to pay for the mortgage debt. But this also means that he or she cannot automatically continue to live in the house. Pay attention to this!

Advantages and disadvantages of community property. Every situation is different, and therefore it is important to make a well-considered decision as to whether or not you want to distribute your property automatically.

Estate mix mortgage. By getting married in community of property, you are both the owner of the house and jointly responsible for the mortgage debt. This is called ‘estate mixing’ and has the advantage that you do not have to pay a transfer tax if your house is counted as joint ownership.

A mortgage debt together? Consider well in advance if it is wise for you both to be responsible for the mortgage debt. Because once this is registered, your lender assumes that there are no fewer than two responsible for the debt. Only the prior recording of prenuptial agreements in an exclusion clause, whereby the house and the mortgage are excluded from the shared property, ensures that only one of you is liable for the mortgage.

Owner-occupied home after the death. If one of you dies, the other can continue to live in the house without the relatives of the deceased partner can do anything about it. That is a nice certainty. However, this leaves the remaining partner automatically responsible for the entire mortgage debt. And it is difficult to suddenly cough up the same amount on your own. Remember this when you make a choice and have it recorded in a will.

Divorce with a purchased house. If you get divorced and are married in community of property, you are both entitled to half the house unless otherwise stated. There are various options for finding a solution for this, such as selling the house or buying one of the two. This is a bottleneck for many (former) partners and it is therefore of great importance that careful consideration is given to this possible situation in advance and that agreements have been made.