Selling a flat in a divorce in the Czech Republic: agreeing on…

A shared flat is often a source of conflict when a marriage ends. We explain when to buy out your partner and when to sell to a third party, what to do about the mortgage, how an independent valuation helps, and which deadlines and taxes to keep in mind.

Selling a flat during a divorce goes most smoothly when both spouses agree in advance on three things: the flat’s value based on an independent valuation, what happens to the mortgage, and how the proceeds will be divided. All of this should then be set out in an agreement settling the community property of spouses (dohoda o vypořádání společného jmění manželů). Buying out your partner makes sense if one of you can afford the flat alone and the bank will transfer the loan to them. In other cases, selling to a third party and dividing the money is usually the cleaner solution.

A flat in community property: who may sell and who must sign

Under Czech law, a flat bought during the marriage generally forms part of the spouses’ community property (společné jmění manželů), even if only one of you is registered as the owner in the Land Registry (katastr nemovitostí). Selling property is not an ordinary matter, so under Section 714 of the Civil Code the spouses must act jointly, or one of them must act with the other’s consent. If one spouse sells without the required consent, the other may claim that the contract is invalid. Until the other spouse does so, however, the contract remains valid. In practice, therefore, both the buyer and the buyer’s bank will want both signatures.

Community property ceases to exist when the divorce decree becomes final. From that moment, a three-year period begins in which the property must be settled. You can sell the flat while you are still married, in which case you both sign the contract as spouses, or after the divorce, when you sign it as former spouses. The timing affects the contracts, taxes and the mortgage, so think it through at the very start.

Buying out your partner or selling to a third party

Let us illustrate this with a model example. According to the valuation, the flat has a market value of CZK 12 million, and CZK 5 million of the mortgage remains outstanding. The net value you are dividing is therefore CZK 7 million.

Buying out your partner: whoever keeps the flat pays the other roughly CZK 3.5 million and at the same time takes over the entire remaining loan of CZK 5 million. In total, they need to finance approximately CZK 8.5 million from their own funds or a new loan, and the bank must accept that their income is sufficient.
Selling to a third party: the CZK 5 million owed to the bank is repaid first from the purchase price, the costs of the sale are deducted (agency fees, lawyer’s escrow (advokátní úschova), and any early repayment fee charged by the bank), and the remainder is divided as agreed. If the costs came to, say, CZK 400,000, each of you would receive roughly CZK 3.3 million.

A buyout saves the costs of the sale, and one partner stays in the home, which tends to matter mainly because of the children. However, only one person then bears the entire risk of the property and the debt, and in practice the most common obstacle is creditworthiness. Selling to a third party is financially more straightforward: both of you leave with money and without shared debt. The deciding question, then, is not which option looks better on paper, but whether one of you can genuinely keep the flat without taking on undue risk.

An independent valuation as the basis for agreement

Disputes over price arise very often in divorce situations. The partner who wants to stay tends to undervalue the flat, while the one who is leaving tends to overstate its value. The simplest way out of this trap is a valuation that comes from neither party. A combination works well: a market appraisal from an estate agent who knows current demand in the particular location and segment, and, where appropriate, a report from a court-appointed expert valuer (soudní znalec) if court proceedings are likely or the value needs to be documented for the authorities.

It is advisable to agree in writing beforehand that the valuation will serve as a binding starting point for both parties. You can also agree on a price range and a minimum price below which you will not sell the flat, or on a procedure for reducing the price if there is no interest from buyers after a certain period. If you need a bank valuation for a new mortgage, bear in mind that it may differ from the market price, as it serves a different purpose.

What to do about the mortgage

A mortgage is a contract with the bank, not between the spouses. Divorce changes nothing about it: you both remain co-borrowers until the bank releases you from the loan. There are essentially three options.

Repayment from the purchase price: the buyer, often with their own mortgage, sends part of the price directly to your bank, which then issues confirmation for the deletion of the mortgage charge (zástavní právo). This is a standard and safe procedure carried out through a lawyer’s or bank escrow.
One partner takes over the loan: the bank assesses whether they can manage the repayments alone. Without the bank’s written consent, the other partner remains a borrower even if the flat is transferred.
Refinancing: the partner keeping the flat arranges a new loan to repay both the original mortgage and the settlement payment owed to the other partner.

Watch out for early repayment fees. The rules changed on 1 September 2024: if you are selling the property that secures the loan and at least 24 months have passed since the contract was signed, the bank will not charge a fee for early repayment. In other cases, it may charge no more than 0.25% for each year or part of a year remaining until the end of the fixed-rate period, up to a maximum of 1% of the amount repaid. For older contracts, the new rules only apply once the fixed rate is renewed, so check the terms in your own contract. If the end of your fixed-rate period, when the mortgage can be repaid without a fee, is approaching, it may be worth adjusting the timing of the sale.

The settlement agreement for community property and what happens without one

A settlement agreement concerning property must be in writing with officially certified signatures, and with respect to the property it only takes effect upon registration in the Land Registry (vklad do katastru nemovitostí). A divorce law amendment came into force on 1 January 2026, introducing what is known as agreed divorce (smluvený rozvod). A written agreement on property, housing and any maintenance, with certified signatures, is still required, but the six-month separation period has been abolished. For spouses who are able to reach an agreement, this speeds things up considerably.

If you are selling the flat, the agreement should state explicitly who is organising the sale, what the minimum price is, who covers the costs, how the mortgage will be repaid and in what proportion the proceeds from the escrow account will be divided. You then both sign the purchase contract. The application for registration costs CZK 2,000, or CZK 1,600 when filed electronically via the Land Registry Portal. The Land Registry decides no earlier than after a 20-day protection period, which runs from the date notice is sent to the parties to the proceedings.

If no agreement is reached, either spouse may apply to the court for a settlement. Court proceedings tend to be lengthy and expensive, requiring expert valuations and lawyers on both sides. The outcome is also uncertain, and in the meantime the flat often sits empty and deteriorates, or one of you lives in it while the other pays the mortgage. If, within three years of the divorce, there is neither a settlement by agreement nor an application to the court, a statutory presumption applies under Section 741 of the Civil Code (občanský zákoník). The former spouses then own the flat in co-ownership (podílové spoluvlastnictví) in equal halves, and any further dispute concerns the dissolution of that co-ownership.

The time, cost and stress of going to court usually outweigh the difference the parties are arguing over. Mediation, a jointly commissioned valuation and an independent intermediary for the sale tend to be the less costly route.

Tax on the sale and the holding period after divorce

Income from the sale of a flat is exempt from income tax if you meet either the holding period test or the residence test. For properties acquired up to the end of 2020, the holding period is five years; for those acquired from 2021 onwards, it is ten years. The residence test requires you to have lived in the property for at least two years immediately before the sale. A further option is an exemption where the money is used to meet your own housing needs. For divorcing spouses, it is important to know that the settlement of community property (společné jmění manželů, SJM) does not constitute a new acquisition. The holding period is therefore not interrupted and runs from the original purchase into community property. The situation is different with a gift, where the period starts again. If the sale gives you exempt income of more than CZK 5 million, you must report it to the tax office no later than the deadline for filing your tax return.

Keep an eye on the residence test, too. Anyone who moved out of the flat long before the sale will not meet the condition of two years immediately before the sale. If they also fail to meet the holding period test, they may become liable for tax. Before signing the agreement, therefore, have the tax implications calculated for each of you separately.

Viewings and preparing the flat when one partner still lives there

A flat in which one of the partners is still living is harder to sell. Personal belongings, tension and unprepared viewings detract from the impression the flat makes, and from the price. It is advisable to agree the rules in writing:

fixed viewing times and a schedule announced in advance,
who pays for minor repairs, cleaning and any preparation of the flat before the sale, and how these costs will be deducted from the proceeds,
viewings conducted by the agent, so that the partners do not have to meet during them,
a move-out date tied to the handover of the flat to the buyer and the release of funds from escrow.

In such a situation, an independent agent also acts as an intermediary. They communicate with both parties equally, pass on offers openly and help keep the discussion about price objective.

Frequently asked questions

Can one spouse sell a flat held in community property (společné jmění manželů, SJM) without the other's consent? They should not. Selling a property requires the consent of both spouses, and the spouse who was left out can seek to have the contract declared invalid. That is why buyers and banks require both spouses' signatures.

Do we have to sell the flat before the divorce? No, you do not. You have three years from the date the divorce judgment becomes final to settle your community property. For an uncontested divorce (smluvený rozvod), however, you need a written agreement on property and housing when you file the petition, so it is wise to decide what will happen to the flat in advance.

Will we pay tax if we sell the flat after the divorce? That depends on the holding period test (časový test) or the residence test (test bydlení). Settling community property does not interrupt the holding period; what counts is the date of the original purchase. All information in this article is general in nature, so please check your specific situation with a lawyer and a tax adviser.

If you are dealing with the sale of a jointly owned flat, DALILE LIVING can arrange an independent market valuation and handle the sale as a neutral intermediary. We will also coordinate with the bank, the solicitor's escrow account (advokátní úschova) and the Land Registry (katastr nemovitostí).