Divorce is a highly challenging process for all involved, and negotiations regarding the division of assets can prove particularly complex and difficult to navigate.
In an ideal world, a couple will quickly be able to reach a joint decision regarding how a property is divided. However, not all divorces are amicable and if this is the case, legal advice and mediation may be needed.
Understanding the legal framework and some of the options available can help ease some of the stress involved in divorce proceedings and ensure the process is as swift and straightforward as possible.
How decisions are made
Several factors will influence how decisions are made regarding the outcome of the family home:
Children’s welfare
If children are involved, their needs will be a key factor when it comes to any decisions made by the court and priority may be given to the parent who has primary custody of the children.
Financial needs
The financial needs and obligations of each party will be considered including their ability to secure housing independently and how much they earn.
Financial contributions
The court will not only evaluate the financial contributions of each party but will also take into consideration the contributions made regarding factors such as home maintenance and childcare.
Potential Outcomes
Once these factors have been taken into consideration there are several different possible outcomes:
The house is sold
The house is sold and the profits are divided between the parties. This may not be an exact 50/50 split as it depends on some of the aforementioned factors.
Many couples will find they need the proceeds of the house sale to support them through the process of the divorce. Unfortunately, selling a house during divorce can be a lengthy and complicated process.
Some couples choose to go through a house-buying company that offers an alternative approach to usual market methods. Such companies can often complete the selling process in just a week and some will allow you to stay in the property rent-free for a while after the sale whilst you get back on your feet.
Transfer of ownership
One person may buy out the other’s share of the property if they have sufficient financial resources to do so. The property and mortgage will then be transferred solely to the buying spouse.
Alternatively, ownership of the house can be transferred to one party as part of the final settlement. This is more likely if it provides stability for any children involved. The party retaining the house may have to make financial arrangements to compensate the other.
Continued joint ownership
The couple may choose to keep hold of the property and defer the sale until a specific event occurs such as the children leaving the family home or turning 18. This arrangement is sometimes known as a ‘Mesher order’.
There is also the option for both parties to retain joint ownership of the property for a certain period of time. Although this will make the process longer, it may be beneficial if other finances are pending.
What happens to the family home is dependent on a number of factors and it’s important to remember that every couple or family is different. Most couples will choose to seek legal advice regardless of whether or not the divorce is amicable.
Getting the correct support and knowing your rights will lessen the chances of proceedings taking longer than necessary. This will help both parties reach a fair and practical solution and pave the way to new beginnings and moving forward.
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