Moving Home After a Relationship Breakdown

Going through a relationship breakdown can be one of the most emotionally and practically challenging experiences in life. If you and your partner have jointly owned a home, figuring out what to do with the property can add another layer of complexity. Whether you’ve decided to sell the home or one of you is considering buying the other out, it’s important to approach the situation carefully, taking both financial and emotional factors into account.

In this blog, we’ll explore the key things you need to consider when moving home after a separation, focusing on the options for handling a jointly owned property.

1. Understanding Your Options: Buy Out vs Sell the Property
When it comes to jointly owned property, there are generally two main options to consider: buying out your ex-partner’s share or selling the property and splitting the proceeds. Each option has its pros and cons, and your choice will depend on your individual circumstances.

Buying Your Ex-Partner Out
If one person wants to stay in the home, buying out the other partner’s share might be the preferred option. This means that one party will pay the other for their equity in the home, and the person staying will take full ownership.

Things to consider when buying out a partner:

• Valuation of the property: You will need to determine the value of the property to establish what is a fair price for the other person’s share. This typically involves hiring a professional surveyor or estate agent to provide a current market valuation. Some people opt to get a few valuations and use these to come to the determine the value of the property.
• Mortgage considerations: If you’re planning to buy out your ex-partner, it’s important to review your financial situation. Can you afford to keep up with the mortgage payments on your own? You would also need to liaise with your lender or financial advisor to see if the mortgage company are agreeable to this. This could involve refinancing the mortgage to ensure it’s in your name only.
• Legal and financial advice: Consulting a solicitor and a financial advisor is crucial to ensure the buy-out process is fair and legally sound. A solicitor can assist with the legal paperwork, while a financial advisor can help you navigate the mortgage and financing aspects.

Selling the Property
In many cases, selling the property is the most straightforward option. This means that both parties will agree to sell the home and split the proceeds according to the terms of the divorce or separation agreement.

Things to consider when selling the property:

• Market conditions: The housing market fluctuates, and selling your home during a downturn may not be ideal if you’re hoping to maximise profits. You may want to consult with an estate agent to assess the market and discuss strategies for selling.
• Timeframe: Depending on the market and the condition of the property, selling your home could take anywhere from a few weeks to several months. If both parties are eager to move on, the timeline of selling the home may need to be discussed and agreed upon.
• Emotional impact: Selling the family home can be an emotionally charged process, particularly if you have children. It may help to approach the sale with sensitivity, considering the impact it will have on everyone involved.

2. Financial Implications: How Will the Sale or Buyout Affect Your Finances?
Whether you decide to buy out your ex-partner’s share or sell the property, there will be financial implications to consider.
• Capital gains tax: If the property is your primary residence, you may be exempt from capital gains tax on the sale, but this will depend on the specific circumstances. If the property is not your main home, or if you’re selling an investment property, you may need to pay capital gains tax on any profit.
• Split of the equity: The division of the property’s value will depend on your agreement or court order. If there are children involved, considerations for their wellbeing and financial security may also influence the decision.
• Mortgage payments: If you’re taking over the mortgage after buying out your partner, be sure that you’re comfortable with the new monthly payments. Can you afford the mortgage on your own, and are there any penalties for refinancing or changing the mortgage terms?

3. Impact on Children: What’s Best for Them?
If you and your partner have children, the decisions you make regarding the family home can have a significant emotional and practical impact on them.
• Stability: Children thrive on stability, so it’s important to consider whether moving home will disrupt their routines. If one parent stays in the home, this can provide a sense of continuity for the children. Alternatively, selling the home and moving into a new property might give both parents the opportunity to start afresh.
• Shared Custody Arrangements: If you and your ex-partner share custody of the children, think about how the housing situation will fit with your parenting plans. If the children will be staying in the home with one parent, you may need to think about whether the space is adequate or if a move would be more practical.
• Support for children: Discuss with your ex-partner how best to handle the sale or buyout process in a way that minimises the impact on the children. Consider their emotional needs and how to maintain open communication throughout the process.

4. Legal Considerations: Seek Professional Advice
The legal complexities surrounding the division of property in a separation or divorce are significant. You and your ex-partner may need to come to an agreement about the division of assets, including the family home, which could require the involvement of family law professionals.

Legal considerations to keep in mind:
• Mediation: If there’s disagreement about what to do with the property, mediation can be a useful tool. A trained mediator can help facilitate discussions and negotiations, making it easier to reach an agreement without going to court.
• Court Orders: If an agreement can’t be reached, the court may step in to make a decision on how the property should be divided. This could involve the sale of the property, the buy-out of one party’s share, or an alternative solution that takes both parties’ financial and emotional needs into account.
• Dealing with joint debts: If there are joint debts attached to the property, such as a mortgage or home equity loan, you will need to work out how to handle these obligations. Both parties are typically responsible for these debts, and it’s important to seek legal advice to ensure a fair division.

5. The Emotional Journey: Take Your Time
Dividing property after a separation can be emotionally taxing, and it’s important to take your time making decisions. While it may be tempting to make swift choices to move on, taking a step back to carefully consider all options can help avoid regret later on.
• Give yourself space: It’s okay to take some time before making any major decisions. This is a big change, and rushing the process can lead to mistakes or decisions that you may not feel good about later.
• Support network: Lean on friends, family, or a counsellor during this time. Having a support network can help you stay grounded and provide perspective during a challenging period.

Planning for the future
Whether you are considering buying out your ex-partner’s share or selling the property altogether, there are many factors to consider when moving home after a separation. By taking the time to evaluate your options, seeking professional legal and financial advice, and thinking about the emotional implications for both yourself and your family, you can make decisions that are in your best interest moving forward.

When you are ready to move forward, our experienced Conveyancing team are on hand to support you with your house sale and purchase. Our Family Law department can also support you with legal advice to help you achieve a fair resolution for your next chapter. Get in touch on 01908 660966 / 01604 828282 or email info@franklins-sols.co.uk .