Selling or Dividing A House After A Divorce

Deciding what to do with the family home after a divorce or separation needs serious consideration. Do you agree to sell the house, or does one partner buy the other out and keep the property for themselves? Alternatively, if you’d like to sell your home quickly, it’s important that you do your research and find the method for selling your house fast.

Here is a guide to give clarity of your rights during a divorce and how a house is divided if you decide to sell it either the traditional estate agent way or with a cash buyer. It’s important that you understand your rights around subjects such as forced sale, and have a thorough understanding so that you can make the best decision for you.

Key takeaways

With around 42% of UK marriages resulting in divorce, having a plan in the need of selling your home is important – there are different laws and legislation to be aware of including a Martin Order and a Mesher Agreement.

You can either remove your name from the mortgage, buy your ex-partner out of your house or agree to sell the home amicably to settle any disagreements around the sale of your property amidst your divorce.

Selling your home quickly with a trusted, reputable cash-buying property company is one route you can choose. It’s a sensible decision allowing for a quick break in the process, meaning you can move on quicker.

In this article:

Should I sell my house before or after a divorce?

Selling your home before a divorce gives both parties time to agree on terms and set up how the house will be divided in a sale. The benefit of a quick sale is that you can move on with everything swiftly, allowing you to settle costs and move on. Selling a house after divorce needs both parties to be on speaking terms with each other. A post-divorce house sale split can give you time to assess the situation and weigh up your options so that you make the best decision for you – rather than costly, emotional ones. If you wait until after the divorce finalises, you may end up with a spouse who’s quite happy to stay in your home. With no incentive to move out, which can be quite frustrating.

There are pros and cons to selling your home before a divorce finalises though, but it depends on everyone’s situation and how amicable the relationship is as to which is the best option for you.

Some of the disadvantages include:

• Change of routine: If children are involved, making big changes like selling the family home before a divorce is even finalised can cause emotional distress.
• Tax consequences: Selling your home before divorce can have implications on the amount of tax that needs to be paid. Be sure to look into the terms of Capital Gains Tax and how this could affect your sale.
• What if you change your mind? These things happen, and you may decide to reverse your divorce but if you have already sold your home, it gives you one more thing to arrange later down the line.

The advantages of selling your home before divorce:

• Speed: By choosing to sell your home with a cash-buying property company, your sale can be completed in as little as 14 days with Good Move, allowing you to move on quickly.
• Fees covered: Selling your home prior to your divorce could leave you with disposable money that could ease the burden of solicitor fees when it comes to finalising your divorce. The immediate payout you receive for your home could certainly come in helpful throughout your divorce.

Who gets the house in a divorce?

The family home is usually the biggest asset shared between a married couple. During a divorce, in around two thirds of the reason for the house sale is because it’s become difficult to afford the running costs on a single income.

Bear in mind that how a house is divided in a divorce is not automatically agreed as a 50/50 split. Some of the factors that affect the decision include who owns the property, how long you’ve been married and who can support themselves financially. Who keeps the home can often be decided between the divorcing couple. If you can mutually agree on a divorce house sale spilt then you can typically expect to divide your home and the funds from the sale without attending court and/or appointing a solicitor.

Usually, the home can be in one name. If it’s in one name, it doesn’t mean that person automatically keeps the property though, as a marriage can mean that both parties have equal interest and, therefore welcome to equal equity. So, it’s important to know your rights. Various factors need to be considered when it comes to deciding who gets to keep the house during a divorce, including:

• How old is each spouse?
• How long were you married?
• Are there any children aged under 18?
• Which parent will they live with?
• Annual earnings and responsibilities of each spouse
• Who contributed what finances and assets to the marriage?

Who gets the house in a divorce with children?

Doing what’s best for the children is a priority in many separations. Keeping a stable family environment, with the same school and friends for children is the ideal scenario. When it comes to deciding who gets the house in a divorce, these are some of the options you should consider:

• Sell your home and split the money. Hopefully you can buy two separate homes, so the children can spend time with you both.
• One partner can buy the other partner out. This allows one parent and the children to stay in the family home, causing minimal disruption.
• Keep the home, with both parents remaining as owners until an agreed event, like the children leave home, or turn 18. This is known as a Mesher agreement.
• You can also transfer an interest in the home from one owner to the other. They will still be entitled to a share of the property once it’s sold, even if they don’t live there.
• A Martin Order is a deferred sale agreed in court, which entitles one partner to stay in the property for life or until they remarry.

If you can’t decide between yourselves, the court can help you. The younger the children are, the more important it is to give them a good home with access to both parents. You can seek expert legal advice from a Family Law and Divorce Solicitor.

Protecting your property rights

When going through a divorce, one of the first things you need to do is protect yourself and your right to the property. Establishing your ‘home rights’ prevents your previous partner from selling, transferring or increasing the mortgage without your knowledge. If you think the home is registered solely in your partner’s name, protecting yourself is even more important.

Home rights make sure neither partner can be forced to leave the home, even if they don’t own it or aren’t named on the mortgage. It also means that if you’ve already left, you don’t forfeit any rights to the ownership. The Family Law Act 1996 gives homeowners the right to:

• Stay in your home unless a court order excludes you from being there.
• Be notified of any repossession action taken by your mortgage lender.
• If you moved out, enable the court to allow you to return.
• Pay the mortgage and avoid repossession if the person named stops making the payments.

The Title Deeds are the legal documents that feature the owner or owners’ names. If only your partner’s name is featured on the Title Deeds you can register your interest. If you live in England or Wales, you need to get in touch with the Land Registry and use a ‘matrimonial home rights notice’ or ‘home rights notice’. To check if your home is registered, and find its title number, visit the HM Land Registry For England and Wales. Free forms are available called HR1.

Top tip

If your property isn’t registered, you can still protect your rights with a ‘class F land charge’ for £1. Protecting your rights in Scotland, Northern Ireland and other places is just as simple. Take a look here for help.

Who pays the mortgage during a divorce?

Anyone named on the mortgage is liable for the repayments. If it’s a joint mortgage, you’re both equally liable. So, even if you’ve moved out, you still need to keep paying the mortgage. You should get in touch with your mortgage lender as soon as you know you are separating, especially if you think you might struggle to keep up the repayments or think you may be left to make the payments alone.

You may be able to receive extra financial help if you’re eligible for benefits. You could even ask for statements to make sure your ex-partner is keeping up with the payments. But the main thing is to make sure that you can put measures into place to stop your partner from applying to increase the mortgage.

How to remove your name from the mortgage

Removing your name from the mortgage after divorce can happen in a couple of ways. If you meet your mortgage lender’s criteria, you may be able to remove your name via a Transfer of Equity, switching the joint mortgage to a single mortgage.

Alternatively, your ex-partner might buy you out; or give you a part of the property’s value, meaning you keep a stake in the house until it is eventually sold.

How to sell quickly after a divorce

Now that you’ve been able to weigh up your options, you may feel that selling your home quickly is the best way to navigate your divorce. How quickly you can sell your home depends on your timescales and which method you choose – it varies from as quickly as seven days to as long as around six months.

Sell via an estate agent

Selling a house after divorce on the open market can take anywhere between three to six months or potentially even longer, depending on factors such as the market, length of the chain and delays with solicitors. You also need to consider the cost of selling via estate agents, as well as the fact that you may end up selling for less than the asking price if your house is not selling quickly enough.

Sell via auction

Selling your property at auction can achieve a fast sale, normally six to 10 weeks. Your house may sell for more or less than the market value depending on demand driven by multiple buyers. You should expect to pay 2.5% of that to the auctioneer.

Sell to a quick house sale company

If you’re looking at selling a house after divorce quickly, you might consider a quick property sale company like Good Move. Quick house sales allow you to sell your property in as little as two weeks, with your seller’s fees all paid for, regardless of the condition of the property. You just need to find a reputable company and get in touch to begin the process of selling to them.

The quick house sale market is not officially regulated by the government, so some house buyers are not accountable or responsible. We recommend choosing a house buyer who is a member of The National Association of Property Buyers like Good Move. This ensures that you are protected if anything goes wrong and you would be entitled to restitution via the Property Ombudsman as well.

To sell your house before, during or after a divorce fast, then you can get an instant quote online from us today. Alternatively, if you have any questions about our house-selling process, simply get in touch with our experienced team.

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