If you are facing a divorce, there will be an overwhelming number of things you must organise, from completing paperwork to sorting out future childcare arrangements. One of the larger tasks to fulfil is the division of assets, including that of the matrimonial home. Would you like to transfer the property into a sole name? Or are there any other options available to you at this stage?
Transferring property to a sole name
If you and your ex-spouse are joint owners of your home, you may decide to transfer the property into one party’s name – otherwise known as a transfer of equity. This will enable one person to move out of the house and recover their share, thereby representing a clean break. The other party will have to buy out their ex-spouse, but will then be able to remain in the property until he or she wishes.
Should you choose to transfer the property into your name, you must think carefully about the financial implications. Indeed, you alone will be responsible for the mortgage payments, meaning you will need to seek approval from your mortgage lender. You will also have to pay your ex-spouse a sum that reflects their share in the property, which may be arranged as a lump sum or as regular instalments.
If you believe you can manage the expense associated with transferring a property into a sole name, you must contact a conveyancing solicitor before you go any further. The change of ownership is a complicated legal process and should only be managed by an experienced conveyancing lawyer.
Are there any other options?
If you do not wish to transfer the family home into a sole name, there are two other options you may want to consider. For example:-
- Sell the property and divide the proceeds. The profit can be split according to each party’s share in the property, although each party must receive enough to ensure he or she can pay for another home. A court can make an order stating exactly how the proceeds should be apportioned.
- Defer the sale. This allows one party to remain in the property until a specified time, such as until the children have finished full-time education. After this date the house must be sold and the proceeds divided. This is particularly useful if one party cannot afford to take on the mortgage alone, or if there are children involved. A court can make a deferred sale of home order to enforce this option.
Contact a conveyancing solicitor today
If you would like further advice about what to do with your matrimonial home after a divorce or separation, contact us today and speak to a member of our conveyancing department. Call us on 0800 142 2901 or complete an online enquiry.