Quickest Way to Sell a Family Home after Divorce?

How to Go About Selling a House after Divorce

The breakdown of a relationship is an emotional and stressful time, even more so if there are children involved. Dealing with the practicalities of divorce or separation, such as what to do with a shared home, can be complicated – especially when most people are keen to move on as quickly as possible.

As well as the financial decisions to be made, it’s important to consider the legal implications, especially since many married couples co-own their property under a “joint tenancy”. This is a legally binding contract that confers sole ownership rights on the surviving spouse if the other dies. But what happens if you decide to divorce?

We’ve put together this guide to help you through the difficult time of selling your home after a divorce, answering key questions on severing joint tenancy, selling the home before the divorce is finalised and how to sell your home after the divorce.

Who Gets the House in a Divorce?

A house is not automatically split 50/50 between a divorcing couple, even if it is jointly owned. The courts will take into consideration a wide range of factors when deciding how the property should be shared and who is allowed to remain, such as:

Are there any children under 18 and whom will they live with.
Your individual incomes and financial commitments after the divorce.
What financial contributions and assets each party made to the marriage.

The courts will always favour the interests of any children (aged under 18) involved and will seek to maintain as much stability as possible for them. An arrangement that requires the children to change schools or leave friends behind will be less likely to succeed than one that maintains the status quo.

If possible, it’s much better to reach an amicable agreement about living arrangements and how to divide your assets. This will save both parties time, money and stress. If there are children involved, the more civil and hassle-free the process is, the easier it will be for them to adjust to your new arrangements.

Do I Have to Sell the House after a Divorce?

No, it is not necessary to sell your family home after divorce. When deciding what to do with the family home, selling is one decision but there are other common options chosen by divorcing couples:

- Sell the House and Divide the Proceeds — both parties move out and start again elsewhere using their share of the proceeds. How much each person gets can be agreed amicably or with recourse to professional advice and ultimately, the family court system.

- One Partner Buys the Other Out — if one of you has the means to pay the other their share of the equity in the property — or whatever sum is deemed reasonable — ownership can be transferred to the remaining occupant. The partner who stays in the home must also have the means to maintain and run the property on their own. Selling is a more popular option as few individuals can afford a family home by themselves.

- Delaying the Sale — the separating couple may decide to sell the property after a certain event has taken place, for example, the youngest child turns 18. The courts can also enforce such an agreement via a “Mesher Order”. A “Martin Order” also delays the sale but it allows one partner to remain in the home for life or until they remarry.

- Transfer an Interest in the Home — one partner remains in the home and the other moves out, but they retain an interest in the property so that when it is eventually sold, they will be entitled to a share of the proceeds.

If you can’t reach an agreement with your ex-partner, the family court will reach a decision. They have the authority to enforce the sale of a property in certain circumstances.

What Are Your Options for Sharing a Family Home after Divorce?

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As mentioned above, there are many options for selling the family home after divorce without having to sell the property right away, but sometimes, one person can be reluctant to take that next step. If this happens, there are other options including renting the property out and that income is then shared between both parties.

Another alternative to selling the property is switching the tenancy from joint tenancy to common tenancy, allowing for more flexible ownership arrangements, which can bring its own complications.

What Is a Joint Tenancy?

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Joint tenants or “beneficial joint tenants” have equal rights to the whole property, regardless of who paid the deposit and how much you each contributed to the mortgage during the course of the marriage. If one spouse dies, ownership automatically passes to the surviving spouse — you cannot pass on ownership of the property in a will if you have a joint tenancy.

Switching to a Tenancy in Common

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Couples who are divorcing or dissolving a civil partnership can sever their joint tenancy by changing their property ownership status to a “tenancy in common”. This means that:

Each partner can own different shares of the property.

Ownership of the property will not automatically pass to your ex-partner if you die.

You can include your share of the property in your will and choose a beneficiary or beneficiaries.

If a separated couple does not make this change and one of them dies, ownership of the property will pass to the remaining spouse. There is no fee for switching to a tenancy in common, you just need to notify the Land Registry of the change by completing the necessary forms.

Can I Sever a Joint Tenancy Without My Ex-Partner’s Consent?

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In England, Wales and Scotland, you are entitled to make this change without your partner’s consent. It is likely to be an easier and less stressful process if both parties agree on the change of ownership status, but there is no legal requirement to obtain your ex-partner’s consent.

If it is not possible to reach an agreement, the party who wishes to switch to a tenancy in common can engage a conveyancer or solicitor to serve a written notice of change — a “notice of severance” — on the other owner. Then complete the appropriate form — a “SEV”— and submit this, along with any necessary supporting documents to HM Land Registry’s Citizen Centre.

Potential Issues With a Tenancy in Common

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A tenancy in common will prevent the property from automatically passing to your ex-partner if you die. However, it raises concerns over what will happen to your share if you pass away. Under a tenancy in common, you are entitled to leave your share of the property to a beneficiary of your choice. However, this could be stressful and problematic for the third-party beneficiary if your ex-partner is still living in the property and does not want to sell.

Many people who make the change from a joint tenancy to a tenancy in common work towards one person buying the other out over some time. Separating couples with children often name their offspring as beneficiaries to ensure that the home stays in the family — this can also represent a tax-efficient way of leaving the whole property to the children.

Can I Sell My House before the Divorce?

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If you are on good terms with your ex-partner, selling before the divorce is finalised can give you a head start in reaching an agreement about your arrangements post-divorce — if you sell the family home you could have the finances in place to buy your own property.

All of which will help everyone involved to move on from the stress and emotions of the separation as quickly as possible.

What Are Your Legal Rights to a House in a Divorce with Children?

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If you and your partner cannot agree on what to do with a family home, the courts can decide.

A Financial Remedy Order, otherwise known as an Ancillary Relief Order, can be issued by a family court to secure a lump sum payment or ownership of a property. However, the courts will prioritise the welfare of any children under the age of 18. If you have left the property and your partner remains there with the children, provided they can afford to stay, most legal bodies will not force them to move out.

The courts may issue a “Mesher Order”, which defers the sale of a family home for a fixed period or until a specific event occurs — all children residing in the property turning 18, for example.

What Happens to a Joint Mortgage When You Divorce?

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Regardless of who lives in the family home, all parties named on the mortgage will be liable to continue making payments. If you or your partner plan to remain in the family home after a divorce or civil partnership dissolution is final, speak to the lender about transferring the mortgage into one name. This will allow the departing spouse to secure finance for a new property and enable the remaining partner to move on, without any reliance on their ex for financial contributions to the mortgage.

If you sell the home, the joint mortgage can be repaid in full with the proceeds, allowing both parties a clean break.

Why Would You Keep a Shared Property After Separation?

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Many separating couples choose to sell their marital home and make a fresh start when a relationship comes to an end. But this is not always either possible or desirable. Potential reasons for keeping a shared property after divorce include:

Maintaining stability for children

Keeping a property that delivers an income, for example, a family home with an annexe used as a holiday let

A slow property market that could result in a low sale price

A preference to wait for the divorce to be finalised before selling

The home has been adapted to accommodate a disability of one spouse or another family member.

How to Sell Your Home Quickly after a Divorce

If you agree to sell the family home — or a court orders you to do so — there are several options available to you.

You could sell on the open market via an estate agent. However, the traditional route of house selling takes an average of 4.2 months — from the first day of marketing to completion. This process is ideal for couples who aren’t in a rush or are going through the divorce or separation proceeding amicably. However, if you’re in a rush to sell up and move on, you might want to explore alternative options:

Traditional Auction — the bidding must meet the property’s reserved price to sell. If an acceptable offer is received, the buyer must complete the sale within 28 days.
Modern Auction — this offers a slightly more flexible option for the buyer. The auction is carried out online. When a successful bid is made the buyer pays a non-refundable reservation fee — up to 5% of the purchase price — and must then exchange contracts within 28 days. They have a further 28 days to complete the sale.
Quick House Sale Company — this is the only way to secure a guaranteed sale. A reputable quick house sale company will have the funds ready to buy your property in a matter of weeks. House Buyer Bureau can buy any type of property in any condition in as little as seven days.

If you’re looking for a quick, hassle-free house sale, get in touch with our team of house cash buyers today. We will give you a fair price from the start and work in line with your timetable.

Chris

Chris has worked in property all his career, first as a successful estate agent before spotting a gap in the market for buying property directly from people looking for a simple, quick sale.

He has a passion for property and as an experienced valuer, has looked at well over 50,000 properties so far at HBB. He has extensive experience in property buying and regularly comments in the press on property matters, trends and promotes ways to simplify and speed up the selling process.

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