A big consideration when you separate is how to sort out any property you own. Every separation is different, but the tips below are a good place to start and will hopefully save you time, money and hassle.
Before we start, it’s important to remember that in the eyes of the law, if you are married/in a civil partnership, the property you own is usually considered as joint, no matter who’s name the deeds are in, or who is on the mortgage.
Step one: explore the options for living arrangements once you separate
Discuss the following:
- Where will you both live when you separate?
- What will happen to the family home?
- One of you lives in it?
- Rented out?
- Will one of you remain in the family home or will you sell the property and split the equity (Equity is the difference between the property value and any mortgage and or selling costs such as estate agent fees)
- If you are selling the property and splitting the equity, how will you decide what percentage you will each need?
- If you have children, discuss their arrangements. How will the children split their time between you? If travel is involved, how near to each other and school will you need to live so the children don’t spend huge amounts of time to-ing and fro-ing between homes.
- Can you afford to buy/rent in the area you’d like to live? If not, what is your plan b?
Step two: collate the information on all your properties
The important facts and figures to gather on all the properties are:
- The value of any property
- Whether it is owned outright or not; If it’s not owned outright, what mortgage remains
- Are there any early repayment penalties on the mortgage?
- Whose name is the property in? If it’s in joint names, find out whether you are ‘Joint Tenants’ or ‘Tenants in Common’
- The costs associated with selling or transferring the deeds of any property
- Any Stamp Duty and or Capital Gains Tax implications liabilities
Step three: the legal bit
You will need to get support if you’re selling/transferring property. Below is a list of the specialists you may need to get involved:
- Conveyancing solicitor – if you’re selling the property or if you’re transferring the name on the deeds
- Mortgage advisor
- An estate agent if you need help with buying or selling
- A tax advisor if you’re unsure on the tax implications i.e. Capital Gains Tax and divorce
- A consent order specialist*
*If you have property and you are getting divorced, it’s important to know that your divorce/dissolution will not end your financial relationship. To do this you’ll need to get a consent order finalised through the courts either whilst you’re divorcing or after.
The purpose of a consent order is to legalise any financial arrangements you have made between you. A consent order is also the only document that will end the possibility of future claims against you / your ex.
Read more about amicable’s consent order service here.
The above is generic help and support, for more details we recommend that you book a one to one chat with one of our experts (for free).