A divorce can cause all kinds of anxieties when it comes to the splitting of assets. Understandably, wanting to feel reassured that your home ownership will be protected is one of them. The family home is considered the most valuable asset when divorce or civil dissolution takes place.
Understanding your home ownership rights before entering divorce proceedings can help to prevent complications and ensure a fair distribution of property assets.
Understanding marital vs. separate property
Understanding how the ownership of your property is set out is a good place to start as this can help you make realistic decisions that cater to everyone’s interests.
- Sole ownership: This means only one person legally owns the property.
- Joint property ownership: If you are ‘joint tenants’, it means you both own 100% of the property. However, owning the house as ‘tenants in common’ means you have separate shares of your property (this could be 50% each).
Documenting property investments
Make sure you gather any evidence where you can prove your contributions. This means compiling records of mortgage payments and down payments. Don’t forget to include evidence of any home improvement costs.
Legal agreements
At this stage, prenuptial agreements will be taken into account. This is a legal contract drawn up by a couple before they get married. It outlines how assets should be divided in the event of a divorce or civil dissolution, although not every couple has one in place. Any postnuptial modifications will also be taken into account. Based on what you decided together before marrying, the prenup could offer you protection when it comes to home ownership.
Similarly, Declarations of Trust outline any unequal contributions. For example, you may have inherited the home. This will help to outline ownership percentages.
Consulting with lawyers
A specialist family law solicitor will be able to negotiate on your behalf based on what is best for you and any children involved. They will inform you of your rights and interpret complex legal documents for you. From there, they will advise you on the best route to take and offer strategies on how to uphold ownership protection.
Negotiating strategies
While working with a lawyer will provide you with legal stability, it’s important to continue communicating with your partner where possible. It is often recommended that you try mediation before reaching out to a lawyer. A collaborative negotiation process, where possible, is less stressful and can help you reach a resolution. Most couples do this by centring their decision on any children’s best interests.
You might consider an equity split, where you determine a division of the home’s equity that reflects both party’s contributions and future needs. Otherwise, the buy-out option allows one of you to keep the house either by financing the mortgage alone or compensating the ex-partner for their share.
Consider protective measures if required
In England and Wales, you can apply for a Home Rights Notice, also known as a Matrimonial Home Rights Notice. It acts as a safeguard for those who don’t own a property but have the right to occupy it. You submit an application to the Land Registry and when granted, you can protect your right to live there and prevent the property from being sold until discussions have been settled. Although it doesn’t alter who legally owns the property, it helps to protect the non-owner while settlements are ongoing.
If you need legal support while exploring property ownership protection where a breakdown of your relationship has taken place, consider contacting a reputable family law firm with experienced solicitors in this field.
