Deciding what to do with the family home is understandably one of the most difficult parts of a getting a divorce. In many cases, this property holds not only financial value but also significant emotional attachment as a result of the memories made there, making this decision even more challenging! Whether you choose to keep, sell, or split your family home will ultimately depend on your personal circumstances and preference. However, understanding your options and the potential outcomes is essential to be able to make an informed choice that benefits you in the long run.
Selling the Family Home
One of the most common outcomes during a divorce is choosing to sell the family home and split the proceeds between both parties. This can give you a fresh start, allowing both you and your ex to separately move into new accommodation and then use the equity from the sale to fund your new life, potentially even by putting down a deposit for another home.
Selling can be a straightforward solution if both parties agree, as it allows for a clean financial break. However, if you can’t come to a mutual decision, you may need to attend mediation or, in some cases, the court may have to intervene.
The court also has the power to order that any sale of the property be delayed until a specific event occurs (often called a trigger event). Trigger events can include the youngest child turning 18, the children leaving higher education, one spouse remarrying, or the death of one or both spouses. These orders are called ‘Mesher’, ‘Martin’, or ‘Harvey’ Orders depending on the nature of the trigger event.
Keeping the Home
Sometimes, keeping the family home can actually be in everyone’s best interests. In such cases, one spouse may continue living in the home with the children to maintain a sense of stability and consistency for them during their formative years. The home could then be sold at a later agreed upon date, such as when the children reach adulthood, with both parties receiving a share of the equity at that time.
Keeping the home can also make financial sense if the housing market is unfavourable at the time of your divorce or if selling would result in a financial loss. In this scenario, some couples choose to rent out the property temporarily. However, it’s essential to remember that both your names will remain on the mortgage in this event, meaning that you are both still financially tied to the property until a sale or transfer of ownership occurs.
Splitting the Home: Buying Out Your Spouse
Another option you may want to explore is the route of buying out your partner’s share of the family home. This can be achieved through a Transfer of Equity, where one party takes full ownership of the property but compensates the other for their share of the property’s equity. The spouse who is bought out would then have their name removed from both the mortgage and the property deeds. Bear in mind however that, if you choose this course of action, the home will need to be valued, and both you and your partner will have to come to an agreement on exactly how the property’s equity will be split. This option can work particularly well if one party wishes to remain in the home, and they are financially capable of taking on the full mortgage.
Other Considerations
Regarding the previous option of buying out your spouse, it is important to note that if you would struggle to manage a mortgage post-divorce, then this avenue can become more complicated as lenders may not allow one spouse to take on the mortgage alone if they can’t meet the affordability criteria. If this is the case, you could explore a guarantor mortgage. This type of mortgage involves a third party, such as a close relative or even your ex-partner, agreeing to guarantee the payments in your stead if ever you are unable to make them. While this can help you keep the family home, you should note that it is a serious legal commitment for the guarantor, as they take on full responsibility for the mortgage should the primary borrower default.
Remember Your Children’s Needs
If there are children involved in your divorce, you should always aim to ensure that they have a stable home environment and that their needs are prioritised in your separation. Courts will always ensure that any arrangement is in the best interests of any children involved in a divorce, especially if they are young.
Whatever option you decide to go with, it is crucial that you make every effort to balance any financial practicality with the emotional and developmental needs of your children. If possible, aim to come to an agreement with your spouse on how the arrangements for your children will be handled, as this will help to create as smooth a transition as possible for them when navigating new living arrangements and family dynamics.
At Grayfords, we believe that divorce should not have to be hard, which is why our team of expert family law solicitors are here to help if you are considering a separation or have another family matter that needs legal assistance. We will guide you through each step of the process surrounding children and finances with effective legal strategies to fight for yours and their best interests, while also providing emotional support alongside our consultants who specialise in mediation, private client law, and therapy. Don’t hesitate to contact us today on 020 7100 6100 and book in your free initial consultation to find out more about how we can help.
