PROPERTY ISSUES

Many people own residential property and when the time comes to make financial arrangements either at divorce or separation, there are a number of property related aspects that need to be addressed. This sheet does not deal with the appropriate division of jointly owned property, for which you need specialist advice, but does look at some practical steps.

If you own the property jointly with your husband/wife or partner (if you are not married) you should check if you own it as joint tenants or as tenants in common. If as joint tenants, then if one of you dies the other will inherit the property automatically. If as tenants in common, then you may leave your share in the property (presumed to be half unless specified to be a different proportion) to someone other than the other owner. Tenants in common may have chosen this form of ownership to reflect different contributions. If only one of you is on the title deeds, when the relationship breaks down, the other person may well want their rights of occupation or potential claims to the property be recognised, and may register a notice at the Land Registry.
If you own as joint tenants and want to convert to a tenancy in common (perhaps to prevent your spouse from automatically inheriting should you die before a settlement in finalised), then you must serve a notice of severance on the other joint owner. After the notice has been received, a copy should be kept with your property records.
One of the ways to deal with jointly owned property is to sell it. You should make sure that the conveyancing solicitor knows exactly what to do with the money (after repaying the mortgage and any selling costs). Usually it is held by him/her until agreement is reached on the division.
Or one of you could buy the other out. If that is what you decide to do, and can afford the extra borrowing, the buyer’s solicitor can deal with the conveyancing for you, usually. Don’t forget that Stamp Duty (under Stamp Duty Land Tax) may be payable, but if the transfer is part of a court order (either on divorce or on separation), then the transfer is exempt.
Finally, don’t forget to review your will as your assets will have changed.