It is possible to divide an apartment only if all requirements established by law are met. Division is usually resorted to in cases of divorce, exchange of housing within a family, or receipt of a joint inheritance. Before using the apartment, you need to allocate a share.
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Types of bond coupons
By the way, in some ways bonds even resemble shares of companies. True, the difference here is significant. The fact is that bonds do not allow you to make any decisions in the company or enterprise. And you won’t be able to rely on property in the traditional sense of bonds either.
The problem is that bonds do not offer a dividend system. On the other hand, there is an acceptable alternative. After all, income on bonds can be received several times in 12 months. And at the end of the term, the face value of the bond will be paid back to you.
Moreover, bonds are much more reliable compared to classic securities. This is because failure to repay or repay will result in default. But in reality, defaults do not happen very often.
In fact, the current mechanism for working with bonds has a simple explanation for the average person. The point is that you provide the issuer with a certain amount in a transaction similar to a debt agreement. To certify this fact, bonds are issued. In this situation, the issuer acts as a borrower, and the bondholder becomes a lender.
This scheme stipulates the frequency of bond payments. Roughly speaking, you can be paid a portion of your income 2 or 3 times in 1 year. And this will continue until the bond expires. After expiration, you also receive the underlying value of that security. Naturally, classic bonds do not obligate you to anything. In general, after 5 years (conditionally) you can resell the bonds through the exchange (to anyone). Even if the security matures only in 10 years. It works quite simply, if you understand it properly.
Division of an apartment during divorce
First, the share is allocated. The spouses can dispose of the shares as they see fit. If the husband or wife does not have any other housing, but there is also no opportunity to live together, there are several options for resolving the issue:
- Selling a share to another spouse or his relative and purchasing another home with the proceeds;
- Exchange of one home for two;
- Depositing property to the bank under a mortgage for the purchase of other real estate;
- Technical division of living space.
Basic terminology for working with bonds
Let's start with duration. This is a time period that reflects the actual payback. Roughly speaking, you invest money and wait for the invested funds to be returned to you. Duration is a clear indicator. The rules here are quite simple:
- Conservative bonds usually have medium duration.
- The lower the duration, the faster you will get your money back.
The redemption date is the date on which the issuing company typically returns the face value to you. In addition, the last coupon income is usually added to the moment of cancellation.
Naturally, oral agreements in such a matter are usually unacceptable. This means that some kind of agreement is needed. The offer is used in this capacity. It is not available for all securities. However, for the majority they still use it. In essence, in the offer the issuer sets its own rules:
- Possibility of resale of bonds.
- Procedure for early cancellation, etc.
A coupon is a user fee. Simply put, it is your interest on the issuer's use of funds. The coupon can be expressed in monetary terms or as a percentage. As for the market value of bonds, it determines the price of a particular security. By the way, this figure is purely a percentage. The price of a bond is determined by the parity of supply and demand (in the base). However, other factors may also influence the price of a security in the market.
Market value should not be confused with par value. They start from the nominal value, but it can be increased. For example, on the Moex exchange the nominal value is usually set at 1 thousand rubles. Those. It cannot be lower (in theory).
Well, the issuer is a specific enterprise or organization. And this is also done by individual regions, sometimes even entire states.
How many shares can the apartment be divided into?
The legislation transfers this issue to the owner for regulation. Since the principle of autonomy of will applies when disposing of one’s property. The owner can divide his apartment into 3, 6, 10, 200 or 1000 shares. The law does not establish any obstacles.
If the share is small and there is no opportunity to live on it, then it would be reasonable to exchange it with another co-owner for compensation in cash or other tangible or intangible benefits. This procedure is formalized either by agreement, or, if there are controversial issues, through the judicial authorities.
If it is not technically possible to divide the dwelling, then the court determines the procedure for use in proportion to the parts. If you wish to receive compensation, you must file a claim.
Security type
Debt category obligations may be secured or unsecured. Yes, the classic scheme does not provide for collateral. However, there are a huge number of variations for such securities. Namely:
- Group of mortgages.
- Fund papers.
- Assets (physical).
Naturally, if the bonds are not secured, the risk increases. Typically, such bonds are issued on the condition that income will be received as a result of the implementation of a project. As for mortgages, credit contracts are very often used here (for example, for real estate). If borrowers repay, the issuer's solvency is confirmed.
Stock securities are pledged exclusively to those that the issuer currently owns.
Well, physical assets mean any valuable property. Trains, planes, real estate, etc.
Reliability criterion
This is an informal classification, however, in some places such terms are still used. Bonds based on reliability criteria are usually divided into:
- Bad.
- Good ones.
By bad (they are also called junk) we mean those securities that are issued by an unreliable issuer. Usually no one knows about this enterprise or organization. Well, good bonds (as you might guess) assume that the issuer is a reliable company or organization.
Profit accrual criterion
In modern conditions, there are many mechanics for paying income to bondholders. The most common of them are:
- Floating (reverse).
- Absent.
- Direct floating.
- Fixed.
In the first case, we assume that a special calculation for the bet is applied. If there is no rate, then nothing is currently being paid for the bond. These are so-called zero-coupon bonds. A direct floating payment scheme assumes that it changes in association with some significant indicator.
Well, the fixed payment mechanics assume that you will receive a set percentage for the bond. This is the most acceptable option for a beginner. Even if circumstances change, the interest rate will not change.
Division of property between spouses in a civil marriage
Cohabitation of a man and a woman without official registration of marriage is called a civil marriage. Such relations are regulated by the Civil Code. The concept of common ownership is not applicable in this situation. Property acquired during a civil marriage is called shared property. Experts recommend discussing the shares of each common-law spouse before purchasing property. Property relations can be regulated using a contract similar to a marriage contract.
Spouses living in a civil marriage should strive to agree on the division of property peacefully. Property registered as shared ownership is easier to divide in the event of a civil marriage dissolution.
The Housing Code regulates ownership rights to real estate acquired by common-law spouses. If the owner is one of the common-law spouses, the second cannot claim it in any way, even in situations where his own funds were spent on the acquisition of property.
Redemption conditions criterion
Well, the last classification for today will be the basic terms of redemption. You need to understand that debt obligations are tied to Central Bank rates. If the interest rate is low, then the assets become profitable. Naturally, this generally applies to all market bonds. And here you need to understand one simple thing. In fact, everyone is at risk:
- Issuers.
- Bondholders.
Therefore, a mechanism is proposed by which the action of an obligation (debt) can be terminated ahead of schedule. This mechanism benefits everyone. Essentially, it allows you to build more flexible relationships between all parties to the transaction. Since such conditions are usually beneficial to the participants in the transaction, an additional opportunity arises. And on the basis of this mechanism, a separate classification of bonds appeared. Namely:
- Convertible papers.
- Review papers.
Convertible notes allow the current holder to convert a specified amount of the bonds into shares of the issuing company. In fact, it is a reinvestment system. As for callable securities, they open up opportunities for the issuer. After all, he can redeem his securities (debt) ahead of schedule. Moreover, if this happens, the holder also receives additional income in the form of a premium amount.
Types of bond coupons
There are 3 main types of coupons:
- Floating.
- Variable.
- Constant.
The rate for such a coupon is calculated based on a whole group of financial indicators. Typically, a direct relationship is made with the key rate of the regulator (in our case, the Central Bank of the Russian Federation). You need to understand that there are disadvantages to coupons of this type. Especially for those who have just begun to understand bonds. After all, predicting (correctly) future events and profitability is quite problematic.
On the other hand, floating coupons have a number of advantages. For example, the coupon rate usually always exceeds current inflation. Official inflation, of course.
Well, we must not forget that floating coupons are usually better in terms of yield than most deposits on the market.
A variable coupon implies that the issuer will be able to change the rate during the course of the play. Roughly speaking, everything here is in the hands of the company issuing the bonds.
And the key disadvantage here is the lack of forecasting. Because you most likely will not be able to guess the issuer’s decisions even with the help of a professional fortune teller. However, there is a positive aspect to this mechanics of replaying prices. The fact is that such bonds very quickly reflect the economic situation. We will finish with the classification of coupons at a constant category. Relatively speaking, in such conditions you will be able to receive money using coupons without any changes or shocks. The accumulation of coupon income here can be predicted, because everything is already known in advance.
In fact, with a permanent coupon, you always know how much you'll get and when. Permanent coupon bonds are more user-friendly and great for beginners. And this is also a good option for putting together a conservative portfolio.
How are coupons taxed?
This is where we need to figure it out thoroughly. Because in some situations, income from coupons actually fits the tax base. And in other situations you won’t have to pay anything. Let's start from the opposite. Based on Article 217 of the Tax Code of the Russian Federation, you will not have to pay taxes for:
- Securities of the Union State.
- Securities of individual regions of the Russian Federation.
- Interest on OFZ.
In addition, you will not have to pay for income through coupons that are associated with corporate bonds. True, it is still important to understand the emission criterion. The fact is that the rules apply only to those bonds that were issued before January 1, 2017.
If the deadline is missed, the tax base is established. In this case, the so-called “tax” on excess rates is applied. The problem is that it is equal to a share of 35 percent. Hardly anyone is delighted with such generosity from the state.
It is also necessary to take into account the rules for applying such a tax. Let's assume that you purchased a package of bonds with an income (at coupons) of 10 percent. And you purchased this bond for 50 units. It turns out that the yield is currently 20 percent. No tax is withheld for this.
However, if you purchased some debt security for 200, with a yield of 16 percent, despite the fact that in fact the yield is half that, then tax will be withheld from you. This is such a cunning system, and in many ways, quite strange.
At the same time, the procedure for withholding taxes has also been established. In particular, you should refer to the following articles:
- 214.9.
- 226.
If you don’t delve into government “twists” and speech patterns, it turns out that the tax agent is the company that pays the citizen money. In principle, there is nothing surprising in this. But here you need to understand the peculiarities of working with bonds.
In fact, after the bond is redeemed, the funds are sent to the depository. And from there the money is distributed to brokerage companies. And the broker is already engaged in the distribution of funds between clients.
It turns out that you won’t be able to withdraw funds from the depository to your personal account right away. And in the case of coupons, it is the depository that is regarded as a tax agent. For those who trade other securities, this may seem unusual, but these are the rules. In fact, it is the depository that will withhold all taxes at the enrollment stage.
But there are also workarounds. And they pose a danger to the holder. Because in certain situations the depository does not act as a tax agent. And also a brokerage company. In this case, the law places full responsibility for paying taxes on the recipient of the income.
In fact, brokerage companies have provided for this option as well. Typically, the benefits from coupons are released through brokerage accounts, which then allow you to withdraw money to a card or somewhere else.
Methods for dividing an apartment into shares
The legislation provides various grounds for dividing housing into parts.
These include:
- act on determination of shares;
- marriage contract;
- judicial procedure.
Agreement on dividing housing into shares
There are two forms of common ownership: shared and joint. With shared ownership, there are official documents for the share, but with joint ownership, the shares are not documented anywhere.
Joint ownership arises when a marriage is concluded without a prenuptial agreement or an agreement on the division of property, as well as between members of dacha cooperatives and farms without agreements on determining the size of shares.
In other situations, shared ownership is created when the share is officially assigned.
Most often, the act of determining the share is drawn up by spouses.
It is much more convenient for spouses to draw up an agreement on determining shares, since the principle of free will applies when creating an agreement, and when signing a marriage contract, there are strict frameworks established by the Russian legislator.
When concluding an agreement on the division of shares, the size of the shares and the property subject to shared division are indicated.
As a rule, in addition to this information, they also prescribe:
- last name, first name, patronymic of each spouse and their details
- subject of the agreement
- rights and obligations of spouses
- liability for improper performance
- bodies resolving disputes by agreement
- termination conditions and effective date
Marriage contract
Spouses can divide common property at a convenient time: before marriage, in family life, during divorce. An agreement is often concluded to determine the parts, but some Russian citizens prefer a marriage contract, although it is not widely used.
A prenuptial agreement is an official written document that must be certified by a notary.
When concluding a marriage contract, a husband and wife can divide the property into two equal parts, for example 1 to 5 or other necessary proportions. The absence of a marriage contract or agreement usually leads to complex, lengthy processes for dividing property.
A marriage contract can be concluded on the following grounds:
- joint: all property acquired by the spouses is divided into two equal proportions;
- shared: everything acquired is divided into shares, which do not necessarily have to be equal;
- separate: all property belongs to one spouse as personal property.
A marriage contract may include other conditions: the procedure for using rooms or the procedure for dividing housing during a judicial divorce.
Trial
Often a married couple cannot properly resolve the issue of division of property, then they have to turn to the courts. The wife must file the claim at the place of residence of the husband, or vice versa.
The claim contains the following information:
- name of the court where the claim was filed
- the name of both spouses and their details
- names of children and their details
- information about marriage: date of registration and date of dissolution
- list of common property with data of title documents
- requirements for division of property
- list of applications
- date
- signature
When considering a case, the court clarifies the necessary circumstances, gets acquainted with the documents, hears explanations from the persons involved in the case, and ultimately makes a decision on the basis of family and civil law.
As a rule, the court most often divides housing into equal shares. But in a number of cases, the judicial authority may increase or decrease the share of the husband or wife due to the residence of a minor child with him.
