Selling a house during a divorce or separation can be messy.
For many people, the goal is the path of least resistance.
This is difficult to find if you don’t understand your rights and responsibilities.
Read on to learn more.
Why do couples sell the family home during separation?
When relationships break down, family homes become contentious issues.
There are a few key reasons why couples may opt to sell during separation:
To move on
Selling property helps avoids ongoing discussions and disputes over property.
Moving can also represent a fresh start after separation. Remaining in the same property may prolong hurt.
To divide assets
Selling is often the fairest way to split this significant asset.
Neither party can afford payments
Selling may be the only option if you can’t jointly avoid mortgage arrears or unpaid bills.
Downsizing requirements
One person staying in a large family home may be impractical. Selling creates funds to downsize.
Will I get 50% of the family house?
When relationships break down, there is no automatic entitlement to 50% of a family home.
How proceeds get divided depends on your legal status:
Married
Assets built up during the marriage are considered joint ‘matrimonial assets’.
These are divided equitably, often around 50/50.
Cohabiting
No automatic rights to share a property’s value.
But you may have a ‘beneficial interest’ if you contributed to the mortgage or bills.
Joint mortgages/ownership
A jointly owned home is usually sold and proceeds divided equally. This is subject to who provided the deposit.
Sole ownership
If your ex-partner wholly owns the house, you have no direct entitlement. But contributions may be taken into account.
In reality, legal ownership does not always dictate practical solutions.
Many couples agree to a fair split. This includes taking into account the dependencies of any children involved.
What is cohabiting?
‘Cohabiting’ means living together in an unmarried intimate relationship.
Around 3.4 million UK couples currently cohabit.
Cohabiting couples don’t enjoy the same legal rights as married partners. This becomes clear during separations.
However, cohabiting rights are an evolving area. Recent legal cases have enforced financial claims where one party was disadvantaged.
When is a cohabiting agreement useful?
Cohabiting agreements set out ownership rights and responsibilities if a couple separates. They aim to avoid disputes down the line.
Critical times to consider a cohabiting agreement are as follows:
Moving in together
Sets expectations from the outset on home ownership and bills when living together.
Buying a home
Defines who owns what share of the property and your rights if you separate.
Making large joint purchases
Details shared responsibilities for mortgages, investments or debts.
Prior relationship breakdown
After previous disputes, an agreement provides security for the future.
Significant income disparity
Ensures the lower earner would be compensated for financially if separating.
Inherited assets
Protects assets you bring into the relationship from future claims.
Cohabiting agreements carry more weight if both parties have taken proper legal advice.
Legal considerations around cohabiting relationships
The increase in cohabiting means more couples need clarity on their legal standing.
Some key considerations include:
Unrecognised rights
Cohabiting does not provide automatic rights to share property or finances after separation. Many couples who cohabitate are unaware of this.
Protection for children
Whilst parents must provide for kids, cohabiting does not confer child maintenance responsibilities.
Vulnerable parties
Recent case law expands rights for financially weaker ex-cohabiting partners. But the law is still catching up.
Inheritance claims
Cohabiting does not entitle you to inherit your partner’s estate without a will. Marriage overrides this.
Seeking legal advice is wise. It helps you to understand where you stand as an unmarried couple.
Steps like drafting wills or setting up joint ownership of assets help protect you.
Other considerations when selling the family home
Selling a long-term family home is always multi-dimensional.
Besides legal and financial considerations, there are also emotional factors to manage.
Sentimental value
A home where children lived and made happy memories holds enormous sentimental value. It can be painful to sell this up.
But you should focus on the positives. The sale enables you to move forward and provides capital for new beginnings.
Impact on children
Moving house is unsettling for children, too. Where possible, involve them in critical decisions and consider their needs.
Ensure they understand it is not their fault and keep their routines consistent.
Rushing the sale
While keen to progress, avoid rushing into a sale before you are ready.
Moving too fast could mean selling below the market price. Or struggling to find new housing fast. Agree to a realistic timeline.
Handling external pressure
From solicitors to estate agents, many parties may pressure you to sell your home. But it must happen at your pace.
Friends and family can provide emotional support during this difficult process.
Coordinating viewings
Viewings can be awkward if there are tensions between you. Communicate clearly regarding times that suit you both. Or agree for just one person to handle viewings if preferable.
By anticipating challenges, you can aim to handle the sale in a mature manner. This will achieve the best result for you both.
Tips for a smooth house sale during divorce
Selling a home during separation can be stressful. Here are some tips for making the process as conflict-free as possible:
Agree on a timeframe
Set a target date to sell by which suits both your needs. This avoids one party delaying.
Instruct one solicitor
Appoint a single solicitor to manage the sale to prevent compensation claims.
Maintain the property
Ensuring the house is clean and well presented will achieve a quicker, higher sale.
Communicate through solicitors
Limit contact during the sale to avoid unnecessary arguments.
Make financial agreements
Cover how to split bills, mortgage payments and profits.
Consider mediation
An independent mediator can overcome sticking points and broker a deal.
Get on with life
Avoid letting the sale take over everything else. Focus on work, friends and your wellbeing.
Selling a family property
Selling a long-term family home is never easy, both practically and emotionally. While it can seem overwhelming, focusing on fairness can improve the process.
There is no magic formula. But being aware of your rights, communicating pragmatically and using experts will help.
For any other questions, such as can a jointly owned property be sold by one owner, get in touch with We Buy Any Home.
