Real estate transfer after divorce
November 29, 2021 | 35,00 EUR | answered by Steuerberater Knut Christiansen
Dear Sir or Madam,
I would like to receive tax advice regarding a notarial preliminary contract. It concerns the transfer of my ex-spouse's share of co-ownership to me. We are legally divorced. We have lived in the property for 2 years and rented it out during the separation year. What tax issues should I expect after acquiring the co-ownership share? Will real estate transfer tax apply? Speculation tax because the apartment has not been rented for 10 years? Possibly gift tax? The apartment is financed by a third party and has been little paid off.
Kind regards,
Kemal Keskin
Hello,
I am happy to provide you with the following initial information regarding your question. Please note that a detailed consultation, especially before the fee offer, is not possible (the portal also receives a share of that, so after deducting sales tax, only a significantly smaller part remains with me).
In principle, in the context of the division of assets in a divorce according to § 3 No. 5 GrEStG, no real estate transfer tax would be incurred if you acquire the property proportionally from your ex-wife.
As the buyer, you would not incur income tax because you are not selling, but your ex-wife is. For her, if a profit is realized (purchase price share minus the purchase price of your ex-wife), income tax would apply, as a taxable sale transaction according to § 23 EStG exists. The profit would therefore be subject to income tax for her. The tax is then determined based on the total income of your ex-wife in the year of the sale.
Gift tax would only arise if your ex-wife transfers the apartment to you gratuitously or obviously sells it at a significantly reduced price. Since, as I understand, you are not deliberately setting the purchase price too low, there is no gift tax. This is certainly not intended. By taking over the loan, it also counts proportionally as consideration (purchase price). If your ex-wife also receives a cash amount in addition, the proportional loan (50%) as well as the cash amount would be considered as the purchase price.
I hope this answers your question, otherwise feel free to ask a follow-up question at no cost.
I would like to point out that this forum cannot replace a detailed and personal tax consultation, but is mainly intended to provide an initial tax assessment. By adding or omitting relevant information, the legal assessment of your issue could be different.
Best regards,
Knut Christiansen
Tax consultant
