Keep the property · Guide
Calculate buyout amount after divorce: property value, remaining mortgage and refinancing
If one spouse wants to keep the jointly owned property after separation or divorce in Germany, one of the first questions is: how much would need to be paid to the other partner? A first estimate is usually based on the property value, the remaining mortgage and the ownership shares.
Just as important is whether the buyout amount can actually be financed. A figure that looks correct on paper can still be rejected by a bank if the overall financing burden is too high.
Key points at a glance
- The buyout amount is often based on the property's calculated equity.
- The main inputs are property value, remaining mortgage and ownership shares.
- The calculated buyout amount is not automatically the final legal entitlement.
- If one partner keeps the property, the bank must assess whether the new financing is affordable.
- An early mortgage review helps avoid unrealistic arrangements.
What is the buyout amount after divorce?
The buyout amount is, in simple terms, the amount one spouse may need to pay the other if they take over the other spouse's share in the jointly owned property. In practice, this is not only about the market value of the property, but also about the remaining mortgage, ownership shares and any further arrangements between the spouses.
The buyout amount is an economic estimate. Whether a legal claim exists and how much it is depends on legal, tax and contractual factors. These questions should be clarified with a lawyer, tax adviser or notary. From a mortgage perspective, the key question is whether the desired amount can be financed by a bank.
The content is for general orientation only and does not replace legal or tax advice. For legal or tax questions, please consult a solicitor, tax adviser or notary.
Which figures are needed for the calculation?
- Current property value
- Remaining German mortgage balance
- Ownership shares according to the land register or agreement
- Possible early repayment penalty
- Current monthly mortgage payment
- Income of the person who wants to keep the property
- Maintenance obligations or other loans
- Planned new loan amount
Basic formula for a first estimate
Formula
Property value
− Remaining mortgage
= Calculated property equity
Calculated property equity
× Ownership share of ex-partner
= Possible buyout amount
Remaining mortgage
+ Buyout amount
= Possible new financing requirement
This formula gives only a first estimate. It does not replace legal advice and it is not a binding mortgage approval. For the bank, the decisive question is whether the remaining borrower can afford the new total financing in the long term.
Example: buying out the ex-partner and keeping the property
Example calculation
- Property value
- €500,000
- Remaining mortgage
- − €300,000
- Calculated equity
- €200,000
- Ex-partner's ownership share (50%)
- €100,000
- New financing requirement
- €400,000
Simplified example for orientation only. The actual buyout amount, financing and cost burden depend on the property value, mortgage agreement, bank assessment and individual circumstances.
In this example, the person keeping the property would not only continue the existing remaining mortgage of €300,000. They would also need to finance €100,000 to buy out the ex-partner. The bank therefore does not only look at the previous monthly payment, but at the new overall financing burden.
Why the calculated buyout amount is not automatically financeable
A common mistake is to focus only on the calculated amount. For the bank, the key question is whether the new financing is affordable. The bank reviews income, existing obligations, maintenance payments, household budget, property value and total loan amount. Even if a buyout amount can be calculated, the bank may reject the financing if the monthly burden is too high.
What else can influence the buyout amount?
In addition to property value and remaining mortgage, further factors may be relevant. These can include renovations, personal contributions, different financing contributions, existing agreements, matrimonial property issues or tax aspects. These points should be reviewed from a legal and tax perspective. For the mortgage review, the key question is which amount can realistically be financed.
The content is for general orientation only and does not replace legal or tax advice.
When should the financing be reviewed?
The financing should be reviewed as early as possible — ideally before binding buyout agreements are made. This helps avoid agreeing to an amount that later cannot be financed. An early assessment shows whether keeping the property, refinancing or selling is economically more realistic.
Suitable next steps
Thomas Brauner
Mortgage adviser
"I advise you personally — no call centre, no automated system. Confidential and free of charge."
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