A. Whether or not you will have to sell the house depends on a range of factors, such as:
- Your income;
- Your earning capacity;
- Any other property and financial resources which either you or your spouse own or are likely to have in the foreseeable future;
- Any financial needs, obligations and responsibilities which either of you have, or are likely to have in the foreseeable future;
- The standard of living enjoyed by the family before the breakdown of the marriage;
- Any physical or mental disability of either of you, or your children;
- The contributions which you have both made to the marriage, both in financial terms and also in looking after the home and caring for the family;
- The conduct of both you, if the court thinks it would be unfair to ignore it
These factors as known by lawyers as “section 25 factors”, and your lawyer at Woolley & Co will be able to guide you through them, and suggest a solution that is appropriate for your family, bearing in mind that everyone’s circumstances are different.
The needs of any child to the marriage are given “first consideration” by the courts who will balance the housing needs of your children (for example that teenage children of the opposite sex will need separate bedrooms), with the financial resources available to you both.
There are usually three options regarding what happens to the former matrimonial home when the finances are divided on divorce. Either:
(a) You sell the house and split the proceeds according to pre-agreed shares. A 50/50 split may or may not be appropriate, depending on various factors, such as the length of the marriage, and the contributions made to the property. If you can’t agree on your shares, it is possible for the money to be held in a secure solicitors’ bank account until you can agree. In the meantime, the solicitor will have to account to both of you for any interest earned; or
(b) One of you keeps the house, and “buys the other out”. This means that you pay the other party a lump sum in return for the property being transferred into your sole name. This is effectively to compensate them for their share in the property, and allows them to put a deposit down on their own property if they want to. If you are considering this option, the party who keeps the house will need to see a mortgage broker to check that they can afford to take on the existing mortgage or that they have enough borrowing power in their own name to remortgage; or
(c) The sale of the house is postponed, and one of you remains in the property in the meantime. The person who leaves the house takes a charge over the property, which is usually expressed as a percentage of the total value of the property. The sale of the house will be “triggered” on the first to occur of certain events, usually:
(i) The death of either party;
(ii) The youngest child reaching the age of 17 or finishing full time secondary education, whichever is the earlier; or
(iii) The remarriage of the person retaining the property. As with option (b), the person remaining in the property should make sure that they can take on the existing level of borrowing, as often the person who leaves will need to get a new mortgage for their new property.
So, whether you will have to sell the house or not depends on a number of factors that will need to be balanced against each other. All of our lawyers at Woolley & Co will be able to guide you through the process and help you reach the right solution for your family. For an initial consultation, please fill out the book appointment request and one of our lawyers will get back to you within 24 hours.