What Happens to the Family Home When You Divorce?

For most divorcing couples, the family home is the most valuable asset and the one that generates the most anxiety. What happens to it depends on your circumstances, what other assets exist, and whether you and your spouse can reach agreement.

The Main Options

Sell and divide the proceeds

This is the most straightforward outcome. The property is sold, any outstanding mortgage is repaid, and the remaining equity is divided between the parties. This achieves a clean break and gives both parties funds to rehouse themselves. The division is not automatically 50/50. The split depends on the overall financial picture and the needs of each party.

One party buys out the other

One spouse keeps the property and pays the other their share of the equity, either from savings or by remortgaging. The party keeping the home must be able to sustain the mortgage in their sole name, which lenders will need to be satisfied about.

Transfer with no payment

Where one party has significantly more assets or income, the court may order a transfer of the property without any payment in return, with that party receiving a larger share of other assets or a reduced maintenance obligation to compensate.

Mesher order: deferred sale

A Mesher order delays the sale of the family home until a specified trigger event, most commonly the youngest child finishing full-time education or the resident spouse remarrying or cohabiting. This allows the children to remain in the family home in the short term. When the trigger event occurs, the property is sold and the proceeds divided according to the proportions set out in the order.

What If You Cannot Agree?

If you and your spouse cannot agree on what should happen to the family home, the family court will decide as part of financial remedy proceedings. The court will look at both parties' housing needs, their incomes, the needs of any children, and the overall asset picture before making a binding order.

What About the Mortgage?

Until the property is sold or transferred, both parties remain jointly liable for the mortgage regardless of who is living in the property. If the mortgage falls into arrears during the proceedings, both parties' credit ratings are affected. It is important to maintain mortgage payments throughout the divorce process.

Can I Force the Sale of the Family Home?

Yes, in most circumstances. Either party can apply to the court for an order for sale. The court has the power to order that the property be sold even if the other party objects, though it will consider the circumstances carefully before doing so, particularly where children are involved.

Summary

The family home can be sold and the proceeds divided, transferred to one spouse with a buyout, or made subject to a deferred sale under a Mesher order. If agreement cannot be reached, the family court will decide. Both parties remain liable for the mortgage until the matter is resolved by court order or agreement.

If this situation sounds familiar, we can help. Get in touch with the Barrister Connect team and we will point you in the right direction. Contact us here.