Guide to dividing property after divorce

For separating couples who are also homeowners, dividing their property tends to be one of their biggest priorities when making financial arrangements.

Dividing property after a divorce is an important part of a financial settlement, which outlines how assets and debts will be shared between two people.

This blog will explain different options available when dividing property after divorce.

You can also find useful information in this podcast episode where Zoopla joins Kate Daly, Co-Founder of amicable to talk about dividing property after divorce:

Types of property:

Family home

Depending on your situation, the family home holds monetary and sentimental value, so separating couples may find it difficult to work out how to divide it.

Here are some options to consider:

• Sell the family home
• Buy the other out
• Get a ‘Mesher Order’
• Offset the value against another asset (ie. pensions)

A ‘Mesher Order’ allows one parent to stay home with children until a specific event triggers the sale. Our guide provides more information on Mesher Orders.

Listen to this episode of The Divorce Podcast where Co-Founder of amicable, Kate Daly, is joined by Joshua Rozenberg and David Hodson to discuss whether 50/50 is a fair way to divide money and property during (or after) a divorce or separation:

Pre-marital and inherited properties

This will depend on the needs of the divorcing couple. If there is enough in the marital pot for any children and both partners to have their needs met, such as housing, then properties acquired before marriage or inherited during the marriage may be treated separately and will remain with their original owner. Whether property is excluded will be case-specific.

Whilst many factors impact how pre-marital assets are treated, taking a more holistic view is useful during negotiation because having an entrenched position can make reaching a fair agreement more difficult.

Properties abroad

Dealing with properties abroad can be complex. The legal process can vary depending on jurisdiction and other factors. It’s recommended that you get specialist advice so that you understand all the options available.

How is property divided during and/or after divorce?

Couples can reach an agreement on how to divide their property, sometimes called a ‘kitchen table agreement’. However, this is not legally binding.

To make your agreement legally binding, you will need to have a consent order drafted by a legal professional, such as amicable and sealed by the court to ensure it’s fair.

You can apply for one after the courts have approved your ‘conditional order’, previously called the decree nisi, including after you have received your ‘final order’ (post-divorce).

The consent order will protect you against future financial claims, including property, from your ex-partner, if a clean break clause is included. It’s also legally binding, so it is enforceable by the courts if the terms of the consent order are broken.

Summary

Navigating property division after divorce involves understanding various options and legal complexities. Seeking professional guidance and having open discussions can help achieve a fair settlement that considers everyone's needs and circumstances.

We offer joint consultation sessions to help you understand your options and discuss anything stopping you from moving forward.