If you’re in the process of a divorce, or dissolving your civil partnership, what happens to the family home is one of the biggest, and most stressful, financial decisions you could face. Here at Property Buyers Today, we want to eliminate any uncertainty with a helpful guide carefully laying out your options, from securing the rights to your home, to understanding how the home can be divided, we’ve got all the advice you need.
We understand everyone’s circumstances are completely different, some of you may have children to consider, while others just want to sell the house fast, that’s why we’ll cover all bases to support you on whichever way you think best suits you.
How can the home be divided?
When you divorce, there are several options when it comes to dividing the family home.
You could decide to:
- Sell the home then use the money towards another home for each of you.
- Arrange for one of you to buy the other out.
- Keep the home with one partner living it perhaps till your children leave school.
- Transfer part of the value of the property from partner to another. This is a financial settlement where the partner who gives up a share of their ownership rights would keep a stake or interest in the home. When the home is sold, he or she will receive a percentage of it’s value.
- A Mesher order.
What is a Mesher order?
In England, or Wales, a home sale can be deferred through what’s called a ‘Mesher’ order. This means a sale can be on hold until a specific event triggers the sale, for example the youngest child turning 18.
The net sale proceeds are then divided in accordance with the court order.
The court can also input a ‘Martin’ order which gives one person entitlement to occupy the property for life, or until remarriage. This is more common with couples with no dependents.
A joint mortgage
Many couples who have a joint mortgage, who then divorce, will sort the mortgage so that only one partner has their name on it.
This, of course, depends on the couple’s financial circumstances.
The advantages of doing this are:
- The partner who is taken off the mortgage should be able to borrow more themselves, than if their name was still on their ex-partner’s mortgage.
- The partner who stays on the mortgage doesn’t have to depend on their ex-partner.
- Both partners can have a clean break from the link that ties their credit files together.
Liaise with your mortgage lender
If you want to take over your mortgage alone, the lender will need to ensure you can afford the payments. Under Financial Conduct Authority (FCA) rules, lenders must carry out in-depth checks.
What if I can’t afford the mortgage on my own?
If you can’t afford the mortgage on your own you may be able to get a ‘guarantor mortgage’.
This is where a close relative agrees to guarantee the mortgage payments if you can’t.
Please be aware that becoming a guarantor is a serious legal step as it means you are responsible for paying the whole mortgage if the borrower can’t. So be sure they take independent legal advice before agreeing to anything.
A clean break
If you’re looking for a quick house sale, and a complete clean break then selling your house for instant cash could be the best option for you. Here at Property Buyers Today we can guarantee you a fast house sale. This way you can simply split the money, and start anew, removing any unnecessary complications.