The word ‘divorce’ originates from the Latin dī (‘apart’) and vertere (‘to turn’).
Sharing a house makes this difficult to do both physically and financially.
It can make selling a house during divorce more difficult.
This is especially true when there’s a joint tenancy involved.
What is a joint tenancy?
A joint tenancy of a property means people have the same rights to it.
It’s often used by married couples, family members or even friends.
Joint tenancies are legally binding regardless of:
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Who paid the deposit
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Who pays more of the mortgage
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Who increased the property’s value the most
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Who has lived in the property longer.
If one spouse passes away, the other will inherit full ownership of the property.
Divorce
Divorces can make joint tenancies confusing, especially for inheritance.
For this reason, many separating couples choose to sever their joint tenancy.
Switching to tenancy in common
Tenancy in common is an alternative ownership model to joint tenancy. It means that each person has a different-sized share of a property.
So, it changes how a property is handled in various circumstances, including divorce.
If you move to a tenancy in common you will need to inform the Land Registry.
One implication is that a partner’s (/ex-partner’s) property share can go to a third party.
Why would you keep a home post-divorce?
Typically, unless children are involved, most couples sell the family home upon divorce.
However, some former spouses buy each other out. Or they cohabit until one party is ready to find their own place.
Some other reasons for not selling a marital home include:
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Your property may provide you and your ex with an income
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For example, a livery yard or holiday lets
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The property market may not be favourable
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You both wish to delay any property decisions until the divorce is finalised
Negative aspects of tenancy in common
Some worry about the implications of a tenancy in common if their ex-spouse were to pass away.
So, some name their children as beneficiaries of their tenancy in common. This ensures that the property stays in the family and avoids some tax implications.
A fair divorce settlement
Property ownership models have no bearing on the financial agreement of your divorce.
All assets will be divided in a way that your legal advisers and the court agree is fair.
