How is the family home divided if we divorce?

Posted on: 22/12/2023

Category: For you

The family home is usually the biggest asset in divorce proceedings and as such, even though it can be a tough call, it often has to be sold as this is the only viable option in order the meet the future housing needs of each party and the children of the family. There are many factors which are taken into account when negotiating as to how the proceeds are divided between husband and wife or civil partner.

If you have been married a long time or in a civil partnership and there are no dependent children, more often than not that the net equity in the family home will be split equally. Although if one party has more pension provision and savings than the other, this would be a reason to move away from an equal division of the net equity. Another reason for a departure from an equal division would be if one party has a significantly higher earning capacity than the other as they would find it easier to obtain a new mortgage to meet their housing needs, although generally speaking they would have to be released from the mortgage on the family home before they could get a mortgage in their sole name. Mortgage lenders can be reluctant to give mortgages to people who remain linked to another mortgage.

Some couples agree that the family home should not be sold until a certain event occurs, such as the youngest child reaching their 18th Birthday. Until the triggering event takes place, the share of the spouse or civil partner who leaves the property would be protected by way of a court order recording when they should receive their agreed a share.

If one party wishes to remain in the family home and can raise sufficient funds, usually by way of a remortgage to buy out their spouses/civil partners share, the house can be transferred. Before transferring any property as a result of a relationship breakdown you should always seek legal advice as there could be costly consequences including tax implications.