25-10-2026

WHAT HAPPENS TO THE FAMILY HOME IN A DIVORCE?

When a married couple divorces, the family home is often their most valuable asset and, at the same time, one of the greatest sources of uncertainty. Many couples therefore ask: What happens to our home when we get divorced?

The short answer is that the home is not automatically sold or transferred when you divorce. You must find a solution together – either by selling the property, having one spouse take over ownership, or continuing to co-own the property for a period of time. If you cannot reach an agreement, the matter may ultimately be resolved as part of the division of marital property.

In this article, we explain the key rules and options so that you understand what happens to the family home in a divorce and which factors you should pay particular attention to.

What Happens to the Family Home in a Divorce?

A divorce does not automatically change the ownership of your home. If both spouses are registered as owners on the title deed, you will continue to own the property together until an agreement has been reached or a decision has been made to the contrary. This includes determining the value at which the property should be included in the division of marital property.

This means, among other things, that:

• - The property is not automatically sold.
• - Neither spouse can take over the property without the other's consent.
• - Neither spouse can unilaterally change the ownership arrangements, for example by selling the property.
• - The property forms part of the division of marital property.

How the property should be dealt with depends, among other things, on your financial circumstances, whether you have children together, and whether you are able to reach an agreement.

The Three Options for the Family Home in a Divorce

There are generally three possible solutions when deciding what to do with the family home.

1. You Sell the Property

The most common solution is to sell the property to a buyer on the open market. Once the property has been sold, the proceeds – or any shortfall – are calculated and included in the financial settlement between the spouses.

Selling the property may be beneficial if:

• - Neither spouse wishes to continue living there.
• - Neither spouse can obtain approval to take over the mortgage loans independently.
• - You want to bring your shared financial affairs to a swift conclusion.

2. One Spouse Takes Over the Property

If one spouse wishes to remain in the home, they can buy out the other spouse's share. This typically requires that:

• - The property is valued.
• - The bank and mortgage credit institution approve the transfer.
• - The spouse transferring their share is released from liability for the loans secured against the property.
• - The spouse taking over the property can assume or refinance the loans.
• - A transfer deed in connection with the divorce is prepared and registered.

In addition, the other spouse must be compensated for their share of any equity in the property. Transferring ownership therefore requires both legal and financial matters to be clarified.

3. You Continue to Co-Own the Property for a Period of Time

Some couples choose to postpone the sale.

This may be because:

• - Market conditions are unfavourable.
• - The children need the opportunity to remain in the home.
• - One spouse is not yet in a position to take over the property.

In these circumstances, it is important to draw up a written agreement covering matters such as:

• - Who will live in the property.
• - How the expenses will be divided.
• - When the property will be sold.
• - How a future transfer of ownership will take place.
• - Whether the spouse living in the property should pay notional rent to the marital estate for the benefit of having exclusive use of the home.

A clear agreement reduces the risk of future disputes and helps ensure that potential problems are addressed in advance.

Can One Spouse Continue Living in the Home?

Yes. It is not unusual for one spouse to remain in the home while the divorce and division of marital property are being dealt with. However, this does not necessarily mean that the spouse will ultimately become the owner of the property.

If you cannot agree on who should have the right to use the property, the question may be considered as part of the overall proceedings concerning the division of marital property. The specific circumstances of the family may be relevant, including whether the couple's children have their primary residence with one of the parents.

Who Pays the Mortgage and Other Expenses Before the Property Is Sold?

This question is a frequent source of conflict. As long as the ownership arrangements remain unchanged, the financial obligations will generally continue.

These may include:

• - Mortgage credit loans.
• - Bank loans.
• - Property taxes.
• - Home insurance.
• - Shared property expenses.
• - Necessary maintenance costs.

How these expenses should ultimately be divided between you depends on the specific circumstances and is often addressed as part of the overall financial settlement.

What Is Notional Rent?

If one spouse moves out while the other continues to live in the property alone, the spouse remaining in the home may, in certain circumstances, be required to pay notional rent, as mentioned above.

Notional rent is not ordinary rent. Rather, it is financial compensation paid to the marital estate for the benefit enjoyed by one spouse through having exclusive use of the property.

The amount depends on the specific circumstances and is not automatically calculated according to a fixed formula. However, the starting point is generally the rent that the property could reasonably command on the open rental market. If this issue arises, it is therefore advisable to seek legal advice.

What Happens if the Property Has Negative Equity?

Not every divorce involves dividing an increase in value. If the property is worth less than the total outstanding debt, the shortfall must also be dealt with.

This may mean that:

• - The property is sold at a loss.
• - Both spouses remain liable for the outstanding debt in accordance with the terms and rules applicable to the specific loans.
• - One spouse takes over both the property and the associated debt, provided the bank approves the arrangement.

Negative equity often makes the division of marital property more complex and increases the need for careful financial planning.

What if Only One of Us Is Registered as the Owner?

Many people assume that the registered owner automatically gets to keep the property. It is not that simple.

Even if only one spouse is registered as the legal owner, the value of the property may still be relevant to the division of marital property if the property has not been designated as that spouse's separate property (særeje). The ownership arrangements, any marital agreements and the financing of the property should therefore always be assessed on a case-by-case basis.

How Is the Value of the Property Determined?

If one spouse is to take over the property, a realistic market value must be established.

This is often done through:

• - A valuation by a real estate agent.
• - An independent property valuation.
• - A value mutually agreed upon by the spouses.

If you cannot agree on the value, further documentation or an expert valuation may be required. An accurate valuation is essential to ensuring a fair division of marital property.

What Is a Transfer Deed in Connection with a Divorce?

If one spouse takes over the property, the change of ownership must be registered. This is done by preparing a transfer deed in connection with the divorce, which is subsequently registered in the Danish Land Registry.

The deed documents, among other things:

• - Who takes over ownership of the property.
• - Which loans are being assumed.
• - When the transfer of ownership takes effect.
• - The legal terms and conditions of the transfer.

It is important that the deed is prepared correctly, as errors can have both legal and financial consequences.

When Should You Contact a Lawyer?

Many divorces can be resolved through constructive dialogue. However, if there is disagreement about the property, substantial equity, joint debt or uncertainty about your rights, seeking legal advice early in the process can be beneficial.

At Bremer Advokater, we advise clients throughout the process of dealing with the family home in a divorce – from the initial considerations to the final division of marital property. We help clarify your rights, review the financial circumstances and ensure that agreements concerning the property are legally sound.

Frequently Asked Questions About the Family Home in a Divorce

Can My Spouse Force Me to Sell the Property?

No, a property is not automatically sold as a result of a divorce. If you cannot agree on a solution, the matter may become part of the division of marital property and may ultimately require a legal determination.

Can I Continue Living in the Home After the Divorce?

Yes, if you reach an agreement or if the specific circumstances support such an arrangement. However, this does not necessarily mean that you will ultimately become the owner of the property.

Who Pays the Mortgage During the Divorce?

This depends on your agreements and the terms of the loans. Until the ownership arrangements change, the financial obligations will generally remain in place.

What if We Have Children?

If you have children together, their needs may influence the practical arrangements concerning the home. However, this does not automatically mean that one spouse will be awarded the property.

What if the Property Has Negative Equity?

The shortfall must also be addressed as part of the division of marital property. Negative equity can make the process more complicated.

Can Only One Spouse Take Over the Property?

Yes, provided that the bank and mortgage credit institution approve the financial arrangements and the transfer is completed correctly.

What Is a Transfer Deed in Connection with a Divorce?

A transfer deed in connection with a divorce is the legal document used to transfer ownership of the property from one or both spouses to the new owner. The transfer is registered in the Danish Land Registry.

Do We Need a Lawyer?

It is not a legal requirement, but legal advice can be extremely helpful if there is disagreement about the property, the finances or the division of marital property.

Get Legal Advice About the Family Home in a Divorce

Deciding what should happen to the family home is often one of the most important financial decisions in a divorce. Finding the right solution can have a significant impact on both your finances and your future options.

At Bremer Advokater, we help you understand the applicable rules and identify the solution that best suits your circumstances. Read more about what happens to the family home in a divorce and get a comprehensive overview of the rules and process here.