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Selling A House After Divorce: What You Should Know

Thu 11 Apr 2024

Selling a house after a divorce (or during the divorce process) can be immensely stressful. Amidst heightened feelings, stress and divorce proceedings, questions on various aspects, such as assets, children, and legalities, arise. 

Here, we answer some crucial questions concerning selling a house after divorce.

Who Gets the House in a Divorce With Children?

One of the critical questions asked during a divorce is who gets the house when children are involved? Ideally, couples decide this amicably, but circumstances may often necessitate turning to the courts.

In such cases, a court might establish a Financial Remedy Order requiring your partner to make a lump sum payment or grant you the ownership of the property, along with provisions for childcare.

Court Decisions and Living Arrangements

When imposing a Financial Remedy Order, the court's decisions are based on:

  • The number of children under 18, their needs, and who they live with at the time of separation.

  • Income, potential future earnings, property, and other financial resources each party has.

  • The age of each spouse and length of the marriage.

  • Any physical or mental disabilities either spouse has.

  • The annual earnings of each spouse and their responsibilities during the marriage.

Living arrangements amid separation and divorce require conscientious planning. Notably, services such as Relate advise taking meticulous time in making these decisions, especially when children are involved.

How is a House Divided in a Divorce?

The matrimonial home often represents the most valuable joint asset a couple owns and is the key aspect to consider when selling a house after divorce.

Options typically include one spouse buying the other out or selling the house and dividing the proceeds. However, intricacies involving children, asset division, and potentially a Mesher Order might further influence the decisions.

What is a Mesher Order?

A Mesher Order defers the sale of a house until a specific event (for instance, the youngest child turning 18). Subsequent to this, the proceeds of the house are divided according to the court order. 

This, however, implies that both partners remain on the mortgage agreement, potentially complicating future mortgage applications.

Who Gets to Stay in the House During Separation?

While traditionally (but not always), one spouse moves out of the house during a divorce. The departing partner doesn't forfeit rights to ownership or occupancy of the house.

Payment Obligations

Despite a pending divorce, maintaining mortgage payments remains crucial, protecting you from property repossession by banks and lenders.

Regardless of your living arrangements, you remain liable for the debt. Discussing potential changes with your mortgage lender as early as possible is highly advised.

Can I Sell My House Before Divorce?

While the perfect time to sell your house during a divorce from an ex-partner doesn't exist, reaching a mutual agreement prior to separation remains optimal. Swiftly selling your house could aid both parties in recovery and moving forward post-divorce.

Parties can sell the property before the divorce is finalised, and then there are options for how they divide up the money and property. Both spouses can agree to sell their house and move out. 

The money raised would be divided according to any agreement made when they bought the property. Alternatively, one party agrees to buy the other one out after a valuation. 

Re-mortgaging your property in St Helens could also present a viable option, enabling you to access the equity in your property, potentially allowing the buyout of your ex-partner's share.

Selling a House After a Divorce Settlement

A quick sale will be beneficial to both parties, helping them get on with their separate lives. Remember that getting the best price will be advantageous, and reaching an agreement on the final sale price may resolve many tensions.

What Next?

Navigating a property sale during divorce is complex and emotional, especially when selling a family home with a joint mortgage.

Given the many factors involved, consulting professionals like a divorce solicitor and an estate agent in St Helens like Burns and Reid can provide clarity and guidance during this challenging time.

If you are looking to sell your property in St Helens due to divorce or separation, our expert team at Burns and Reid can advise you. You can also get an instant valuation here.

Email us at info@burnsandreid.co.uk or call us at 01744 752898.