Being in a committed long-term relationship offers a range of benefits, especially when you can combine your incomes to buy a home together. Sadly, these relationships don’t always last. So how do you go about selling your home when you are separating or divorcing?
Do You Have To Sell Your House When You’re Divorcing?
A forced sale of your home is dependent on a number of factors. There are two elements which hold the most prominence though; the amicability between both parties at break up and the ownership status of the property.
There are three main approaches to handling the division of property assets during a divorce:
1. Purchase your ex-spouses share – If your break-up was harmonious and you have a good amount of money in the bank, this may be your easiest option. Before deciding on this method though, you must ensure that the chosen individual can afford to live in the property alone. This means cross referencing income with the mortgage payments, average bill costs and living expenses.
2. Sell the property and divide the money – If neither party can afford to purchase the other’s share, then it is a good idea to sell the property. The funds can then be divided into equal parts and be used for their new life.
3. Agree to keep the home as a future investment – If both parties would prefer to avoid making rash decisions, they can agree to keep the house in both of their names until a decision is made at a later date.
There are many variables that can make the division of assets much more complicated. Children, for example, can often lead to a ‘Mesher’ order from the court. A Mesher Order allows the sale of the family home to be deferred for a certain length of time or until a specific event takes place; such as when the children leave school. The courts will also decide which individual would be best suited to stay in the family home to look after them.
Can You Be Forced To Sell Your House In A Divorce?
Yes, often you can. If your former spouse wishes to seek a share of the profits from the sale of your home, you will always have to comply with the request unless you can offer that individual a sum of money that they consider fair compensation.
In two thirds of all separations and divorces, the home that was formerly shared ends up being sold for the sake of freeing up capital. This is most likely a result of the growing disparity between wage rises and house prices as few couples would have been able to purchase their current home as an individual.
If both individuals wish to keep the home, a divorce court may order the home to be sold during proceedings to keep things fair. However, there are exceptions to these rules and these exceptions often occur when children are involved.
The most important thing to remember is that regardless of who has invested more into the property, if both of you are listed as joint tenants or even as tenants in common then you will always need your ex-spouse’s approval before any decisions can be made.
Can You Sell A House If One Partner Refuses?
Yes, you can. But if you are no longer on good terms with your ex-partner, it is likely that you will need a court order to ensure that the marital home will be placed on the market.
As you may have noticed, the running theme throughout this article is that courts do not necessarily have to get involved in asset distribution if the separating couple can do it themselves. But when emotions are high, it can often take a judge’s ruling to help the situation become unstuck.
Sadly, there are many individuals going through divorce who are very bitter towards their ex-partner and will use the divorce process to hurt them. This can involve falsifying information, hiding assets and capital from their ex-partner, or even stealing money from joint accounts. Most of these individuals are not experts at evading the courts and as most divorce rulings are made at the court’s discretion, performing actions that show a lack of character will not carry favour with the judge.
Who Should You Choose To Sell Your House During A Divorce?
Most couples who separate and are happy to sell a shared home will choose to do so once the legal side of the separation or divorce is complete. This is because the divorce can be a huge source of stress for both parties and the likelihood of making a rash decision can be heightened. Regardless of the time a couple chooses to sell, there are a number of options available to them, some of which are extremely helpful if a sale needs to be completed in a short space of time.
– High street estate agents – Agents will only be willing the list the property if all legal proceedings have been finalised and for good reason. If the status of ownership has not been resolved, any potential buyers are likely to be deterred and this reflects badly on the agent’s reputation.
– Online estate agents – These agents offer the same services as a high street agent but with a generally lower fee rate. Once again, online agents are likely to only list the property when the legal proceedings are complete.
– Direct sales – The benefits of this approach are obvious: no agency fees and no obligations. Unfortunately, many of these people are unaware of the intricacies involved with selling a property and ultimately choose to sell via an agent once they realise how hard it can be.
If you need to sell a house faster than your average, then you also have the following options:
– Auctions – Auctions are a great way to sell a house fast but it may not have a happy ending. When you choose to sell in an auction you must pay a fee regardless of whether or not the property sells. Furthermore, if you fail to set a reasonable reserve price for the home, it may sell for much less than you’re expecting and there are no refunds.
– Property Investors or House Buying Companies – A more popular option to sell your house fast is to enlist the help of a house-buying company or local property investor. Here at Olivia Rose Estates we can complete the purchase in as little as 14 days after initial contact. Typically these purchasers are offering a convenience service and are likely to offer slightly below market value, but you are always provided with a free quote that carries no obligation and can be turned down.
How Is A House Sale Divided In A Divorce?
The profits from a house sale can be divided very easily if the separating couple are willing to discuss the issue in an amicable manner, but this is not always the case. If you manage to gain a judge’s ruling to sell your home, it should be worth noting that you may not get as much of the profit as you hoped. You may find yourself with a reduced share of profits if your ex-partner is able to prove any of the following:
– They have shouldered the majority of expenses for home maintenance and improvements.
– That they have paid a much larger proportion of the living costs for both of you during the time that you lived there, including utilities and council tax.
– That they provided a higher mortgage deposit contribution when the property was originally bought.
– That you have attempted to conceal earnings or have kept a secret account without your partner’s knowledge.
Many individuals who have lived with a partner for many years have found that, unbeknownst to them, they did not have a strong legal standing. Many also find that they have little recorded financial interest in the home that they lived in together. Unfortunately, they tend to only learn about their situation during what is already an extremely stressful and upsetting time of their lives.
Are you going through a separation and need help to sell your home fast? Why not ask Olivia Rose Estates for advice, as we buy any house. We are here to help you sell your house fast. We can offer a guaranteed cash purchase for your property in a timescale that suits you. It could be a couple of weeks, or even just a few days. You no longer have to pay estate agents fees and deal with the potential long delays of a traditional sale process. It is not uncommon for house sales and purchases to fall through due to broken chains or mortgages not being approved at the last minute. We offer a service that is tailored to your needs and can structure the process to put you back in control of your future.
