Are you getting divorced and want to keep the family home? Are you inheriting a house with your brothers and sisters, and one of you wants to keep it? In both situations, the same mechanism comes into play: the buyout payment (soulte — the cash sum paid to even out an unequal share). Whoever keeps the property buys out the others' share by paying them a sum of money. It still has to be calculated correctly, because a valuation error or a forgotten outstanding loan can run into tens of thousands of euros.
Calculating the buyout payment in a divorce, just as in an inheritance, rests on a simple logic — the value of the property, the outstanding loan balance and each party's share — but it comes with costs that are often underestimated: the partition duty (droit de partage) and the notary fees on the deed of partition. Not to mention the bank's consent, which is essential to take over the loan alone.
1.1% partition duty in the event of divorce — this is the rate applied to the net partitioned assets since 1 January 2022, down from 2.5% previously (CGI — French General Tax Code — article 746).
What this article covers
This article explains how the buyout payment is calculated in three contexts — divorce, exit from joint ownership and inheritance — with its core formula, the role of the outstanding loan balance, the associated costs (partition duty and notary fees) and the condition of the bank's release of liability. A full worked example details the calculation from start to finish, followed by the most common mistakes.
Buyout payment, joint ownership and partition duty: the legal framework
The buyout payment is not a tax mechanism but a concept of civil law: it is the sum paid by whoever receives a property worth more than their share, in order to compensate the other co-sharers. It arises whenever an indivisible asset — a home — must be allocated to a single person while several people hold rights over it. Joint ownership (indivision) precisely describes the situation in which several people hold the same asset together, without any physical division of the shares.
The partition brings the joint ownership to an end. When it concerns real estate, it takes the form of a notarial deed subject to the partition duty (droit de partage), a registration duty provided for by article 746 of the French General Tax Code (CGI). This duty is levied on the net partitioned assets — the value of the partitioned property less the debts secured against it. The buyout payment made to a co-sharer is not added to this base: it is a method of distribution, not an additional asset to be taxed.
Three main situations give rise to a buyout payment calculation. Divorce, when one of the spouses keeps the shared home and buys out the other's share as part of the liquidation of the matrimonial regime. Exit from joint ownership, when co-owners — unmarried partners, joint buyers — bring their shared ownership to an end. And finally inheritance, when an heir wishes to keep a property that several people received together. In all three cases the principle is identical, but the partition duty rate and the legal context differ.
| Partition context | Partition duty rate | Legal reference |
|---|---|---|
| Divorce, judicial separation, end of a PACS civil partnership | 1.1% of the net partitioned assets | CGI article 746 |
| Inheritance partition, other joint ownership | 2.5% of the net partitioned assets | CGI article 746 |
The reduced 1.1% rate for partitions linked to the breakdown of a union came into force on 1 January 2022. Previously, the partition duty was 2.5% in all cases. This reduction, which significantly lowers the cost of a separation, only applies to partitions following a divorce, a judicial separation or the dissolution of a PACS civil partnership; the partition of an inheritance remains taxed at 2.5%.
On top of this partition duty come the notary's fees, since the notary draws up the deed of partition and arranges its registration with the land registry. These notary fees, separate from the buyout payment, are calculated on the value of the partitioned property according to a regulated tariff. Finally, where a mortgage still finances the property, taking it over by the person who keeps it requires the lender's consent: this is the release of liability, which frees the other borrower from their commitment (source: service-public.gouv.fr).
How to calculate a buyout payment: the detailed formula
Calculating a buyout payment unfolds in three stages: the property is valued, the outstanding loan balance is subtracted to obtain the net value, then the share of the person whose rights are being bought out is applied. The core formula is as follows:
Key takeaway: buyout payment = (value of the property − outstanding loan balance) × the other co-owner's share.
Step 1 — Valuing the property
It all starts with the market value of the property, that is, its market price on the day of partition. This estimate can be carried out amicably between the parties, by an estate agent or, in the event of disagreement, by an expert. In a divorce, the valuation date used is the one closest to the partition and not the date of separation — which matters in a market that keeps moving. Both over-valuation and under-valuation throw off the buyout payment: this is the most sensitive step.
Profile: a couple owning a flat bought for €280,000 six years ago, financed by a mortgage of which part is still outstanding, and which one of the two wishes to keep after the divorce.
Step 2 — Deducting the outstanding loan balance
If the property is still secured by a loan, the outstanding loan balance (capital restant dû — the amount still to be repaid to the bank, excluding future interest) is deducted from its value. This gives the net value of the property, which represents the wealth actually held by the co-owners. It is on this net value, and not on the potential sale price, that each party's share is calculated. Forgetting this deduction leads to over-valuing the buyout payment and making whoever keeps the property pay too much.
Step 3 — Applying the share
Finally, the share of the person whose rights are being bought out is applied to the net value. For a couple who bought in equal shares, each holds 50%: whoever keeps the property therefore pays the other a buyout payment equal to half the net value. In an inheritance shared between three heirs in equal parts, whoever keeps the home buys out the other two thirds, that is, a buyout payment equal to two thirds of the net value.
The share is not always 50/50. When one of the spouses financed a larger part of the down payment, or when the purchase was made in unequal proportions (for example 60/40), the split appears in the purchase deed. It is this contractual share that serves as the basis for the calculation, unless the parties agree otherwise. In an inheritance joint ownership, each heir's share follows from the statutory order of devolution or the terms of the will. Checking the exact split before calculating the buyout payment avoids an imbalance that the other party could contest.
| Element | Role in the calculation |
|---|---|
| Market value of the property | Starting point: market price on the day of partition |
| Outstanding loan balance (CRD) | To be deducted to obtain the net value |
| The other co-owner's share | Fraction of the net value that makes up the buyout payment |
| Partition duty | 1.1% (divorce) or 2.5% (inheritance) of the net assets |
| Notary fees | Fees on the deed of partition, on top of the buyout payment |
The buyout payment calculation sets what you pay to the other party; the partition duty and the notary fees represent the administrative cost of the operation. These two dimensions add up and must be anticipated together when you assess your ability to keep the property.
Worked example: a flat taken over after a divorce
Let us take an illustrative case, with figures of an order of magnitude consistent with the market. You and your former spouse bought a flat in equal shares (50/50). On the day of partition, it is valued at €312,000 (a plausible market value for a two-bedroom flat in a regional metropolitan area, DVF order of magnitude — DVF being the French public land transactions database). There is still €96,400 of capital to repay on the loan. You wish to keep the home and buy out your former spouse's share.
Scenario — Buying out the spouse's 50% share
| Item | Calculation detail | Amount |
|---|---|---|
| Market value of the property | Valuation on the day of partition | €312,000 |
| Outstanding loan balance | To be deducted | − €96,400 |
| Net value of the property | 312,000 − 96,400 | €215,600 |
| Buyout payment due to the spouse | 215,600 × 50% | €107,800 |
To this buyout payment of €107,800 is added the administrative cost of the partition. The partition duty, at the reduced 1.1% rate applicable in a divorce, is calculated on the net partitioned assets. On a net value of €215,600, it amounts to roughly €2,372 (215,600 × 1.1%). Then come the notary fees on the deed of partition, calculated according to the regulated tariff on the value of the partitioned property, to be set aside on top of the buyout payment.
In practical terms, to keep the flat you need to raise €107,800 for your former spouse, take over the €96,400 of remaining loan alone — subject to the bank's consent — and fund the partition duty and the notary fees. Precisely estimating this overall requirement with your own figures is exactly what a buyout payment calculator lets you do.
Common mistakes in calculating the buyout payment
Mistake 1 — Forgetting to deduct the outstanding loan balance
The most costly mistake is to calculate the buyout payment on the gross value of the property without deducting the loan still outstanding. In our example, reasoning on €312,000 instead of €215,600 would result in a buyout payment of €156,000 instead of €107,800 — almost €48,000 overpaid. The buyout payment is always calculated on the net value, after deducting the outstanding loan balance.
Mistake 2 — Believing the release of liability is automatic
Taking over the loan alone requires the bank's express consent, which is never a given. The lending institution checks that your income is enough to bear the monthly payment on your own. Without this release of liability, your former spouse remains legally a co-borrower and therefore liable for the debt, even after the partition. Anticipate this step well in advance, because a refusal from the bank can call the whole buyout project into question.
Mistake 3 — Underestimating the partition duty and notary fees
Many people budget only for the buyout payment and discover the partition duty and the notary's fees too late. The partition duty is 1.1% of the net assets in a divorce, but 2.5% in an inheritance (CGI article 746): on an inheritance joint ownership, the rate gap weighs more heavily. These costs add up on top of the buyout payment and must appear in your financing plan from the outset.
⚠️ Warning: the property valuation date used for the partition is the one closest to the partition, not the date of separation. In a rising market, waiting can increase the buyout payment you will have to pay; in a falling market, the opposite is true. This time gap is a frequent source of disputes.
Mistake 4 — Confusing divorce and inheritance on the partition rate
The reduced 1.1% rate only applies to partitions linked to the breakdown of a union (divorce, separation, dissolution of a PACS civil partnership). To exit an inheritance joint ownership — buying out your co-heirs' share of the family home — the partition duty remains 2.5% (CGI article 746). Applying the wrong rate distorts your estimate of the total cost.
Calculate your buyout payment before committing
Mon Simulateur Immobilier buyout payment calculator
Enter the value of the property, the outstanding loan balance and each co-owner's share: the buyout payment calculator estimates the exact amount to pay, in a divorce as in an inheritance, and gives you an order of magnitude for the partition costs to expect.
To go further: inheritance tax calculator and notary fees calculator.
Conclusion
Calculating a buyout payment comes down to answering a single question: how much, net, is the other party's share in the property worth? The formula is constant — net value of the property multiplied by the share — but the result depends entirely on the accuracy of the valuation and on accounting for the loan. To this are added the partition duty (1.1% in a divorce, 2.5% in an inheritance) and the notary fees, as well as the bank's essential consent to take over the loan alone.
Before committing to keep the home, work out the full operation. The Mon Simulateur Immobilier buyout payment calculator lets you test different property values and loan levels to check that the buyout remains within your reach.
