Separation When You Own

The family home is often the single biggest financial issue in a separation. What happens to it depends on a number of factors, including whether you are married or unmarried, whether there are children, your respective financial positions and what you can agree between yourselves.

The main options

• Sell and divide the proceeds, the most straightforward option, but not always practical if children are involved or the market is difficult
• One party buys the other out, requires the buying party to be able to afford to take on the mortgage alone
• Deferred sale, the property remains jointly owned for a period (often until children reach adulthood) before being sold
• Transfer to one party with no payment, sometimes appropriate where the other party has greater pension or other assets to offset

If you are married

For married couples, the family home will be considered as part of the overall financial settlement. The court will take into account all assets, the needs of any children and each party's financial position in determining a fair outcome.

If you are unmarried

Unmarried couples do not have the same automatic rights as married couples. Your rights depend on how the property is owned, sole or joint ownership, and whether there is a Declaration of Trust.

Joint ownership and what it means on separation

If you own a home together, you are either joint tenants or tenants in common. Joint tenants own the property equally without defined shares. On separation, either party can sever the joint tenancy and convert it to tenancy in common, meaning each party owns a defined share. Tenants in common already own defined shares, which can be different if the property was purchased with unequal contributions.

Protecting your interest in the property

If you are not on the mortgage or title but have contributed to the purchase price or improvements, you may have an equitable interest in the property. If you are concerned about your interest in a jointly owned property, register a restriction with the Land Registry, which prevents the property from being sold or remortgaged without your involvement.