Navigating Divorce & Selling a House in Putney

Going through a divorce can be one of the most stressful processes to experience in life. If you are also facing the prospect of selling your home as a result, there are even more complications to navigate.

Many divorcing couples end up going through the courts to determine what happens with their home. Details such as ownership and whether there are children under the age of 18 living in the home will be deciding factors in whether the house must be sold or whether one person stays in the home.

If you are wondering whether you will need to sell your house due to divorce, this guide explains the different scenarios and outcomes. A positive to take from your situation is that there is a good chance the value of your property has increased since you bought it.

Over the last 10 years, data from the Land Registry shows that the average property price across the Wandsworth local authority has increased from £573,212 (Aug 2014) to £631,945 (Aug 2024). So, if you are selling a property in Putney, you could be in the position of using equity in your property for a fresh new start.

Firstly, let’s look at the different options and scenarios:

Divorce and Selling a House: Your Options

Whether you need the courts to decide the outcome or you reach an agreement between yourselves, these are the possible options for what happens to your house following a divorce:

Transfer ownership to one partner

In some circumstances, a divorcing couple agree that ownership of the property will get transferred to one partner. This would usually be when there is no or little equity in the property for the other partner to receive. Alternatively, there may be other assets that the other partner keeps in exchange for any equity in the property.

A solicitor would need to transfer the ownership into the name of the partner remaining in the property and the other partner’s name would be removed from the deeds. The partner keeping ownership of the property would have to be able to afford the mortgage on their own and take out a new mortgage in their own name.

Transfer some of the property (financial settlement)

Another scenario is that part of the value is transferred from one partner to the other. For example, a court divorce settlement could determine that one partner remains in the family home until the youngest child reaches 18 years old, when the property would be sold, and the other partner would receive their percentage of the property value when it is eventually sold.

Sell the property, share the proceeds

The most straightforward option is to sell the property and each partner then shares the proceeds of the sale. The solicitor would transfer the equal amounts into each partner’s bank account and the deeds would be transferred to the new owner.

Buy your partner’s share

If one partner wants to keep the marital home and can afford to pay the mortgage on their own, they could buy their partner’s share if they have the finances to do so. The property would be valued and the partner leaving the property will receive their share of any equity. The deeds would be transferred to the person buying the other’s share.

Which of these scenarios will be the most suitable will depend on factors such as whether there are any children, how much equity is in the home and whether one partner can afford the mortgage on their own.

How does property ownership type affect the sale?

The ownership of the property will affect what happens when you sell the house. These are the most common ownership situations:

• Sole ownership – If the property is owned by just one person, it is still considered to be a matrimonial asset. This means that the partner who did not originally purchase the matrimonial home could still have rights in terms of living in the property and financial entitlement. In this situation, the courts will usually decide whether the house must be sold and waiting for the divorce settlement could delay the sale of the house.
• Tenants in common – This type of ownership is where each partner owns a set share of the property, such as 70% and 30%. This means that when the couple divorce, they receive their share of the property, either when it is sold, or the other person buys out their share.
• Joint tenancy – With a joint tenancy, both partners have an equal share in the property. When the house is sold, each partner will receive an equal share of equity.

How these situations affect the sale depends on how quickly the couple can agree on the next steps or a court order may be required to decide the financial settlement. If there are children involved or there are disputes over whether one partner wants to sell the house, this can result in a lengthy legal process before the house can be sold. A property adjustment order will review factors such as financial circumstances and the welfare of children under 18 when deciding on the outcome.

Selling a House After Divorce vs. Before Divorce

Some couples decide to sell the house before the divorce settlement, as this releases equity faster than waiting until the divorce is finalised. However, bear in mind that there are pros and cons to selling before the divorce:

Pros of selling before divorce

• The money tied into the house will be available as soon as the sale goes through.
• You can move out and avoid the hassle of deciding who will live in the property until the divorce is settled.
• You have longer to agree on how the finances will be split.

Cons of selling before divorce

• It may take a long time to sell the property, especially in a cold property market.
• You may make the decision as an emotional reaction before thinking it through properly.
• It might not be the best time to achieve the highest asking price for the property.

Who Gets the house in a Divorce With Children?

If there are children under the age of 18 living in the property, the process is more complex. In some cases, a mesher order is awarded by the court, where one parent remains in the home with the children until the youngest child turns 18. The house would then be sold when the child reaches 18 so the proceeds from the sale can be distributed as decided by the court.

If one parent can afford to pay the other’s share in the property and make the mortgage payments, they may decide to transfer ownership. The court will prioritise the best interests of the children.

Steps to Selling Your Property During Divorce

Before you decide to put your house on the market, you should follow these steps:

• Get expert advice – Speak to a financial advisor or solicitor to understand your rights and discuss the possible options.
• Understand your legal position – Every situation is different, so it is important to establish your legal position in terms of property ownership and how having children affects your legal rights.
• Explore your options – Before making any decisions, review all the potential options to see which one is most suitable. This includes deciding whether to sell before or after the divorce, whether to transfer ownership or sell the property to share the equity. Reaching an agreement can be complicated and may need to go through court.
• Notify your mortgage lender – You should also speak to your mortgage lender to understand the implications of transferring ownership or to advise them that you are selling the property.
• Get a professional valuation – Speak to an estate agent to get a valuation of the property, so you have a clearer position on your financial situation. They will also be able to advise on how long properties are taking to sell in your area.
• Agree on the sale with your spouse – Before you start the process of selling your property, you should decide on an agreed asking price, how the proceeds will be divided and who will be managing the process i.e. who will be the main contact for the estate agent.
• Prepare and market the property – You will need to decide on which estate agent to use and arrange for the property to be prepared for sale. This could include getting any minor repairs fixed and ensuring the property is clean and tidy for viewings.
• Handle the sale proceeds – Once the house sale goes through, the proceeds will be divided by the solicitor according to the agreement or court order.
• Formalise the agreement – To make the decision to sell legally bindng, you need to apply for a consent order to sell the house. This will ensure both parties are in agreement with the sale and will help make sure the sale goes through, and each party fulfils their obligations.
• Update your divorce settlement – Once you have sold the property and proceeds have been divided, you will need to update your divorce settlement so that the proceedings can be accurately reflected in the settlement.

If you are considering selling your property in Putney, arrange a valuation to find out how much your property is worth. We can answer any questions you have about the sale process and help you to achieve your asking price.