Here Are Your Options When Transferring Your Property's Ownership
What if the property is under both names? Shared owners can still have the property as joint tenants or tenants in common. As Joint Tenants, you will still both own the property without any specifics on how much share the each of you has on it. If any of you unfortunately passes away, the joint owner will own the entire property, irrespective of the existence of a will and whatever's stated in it. As for Tenants In Common, each partner will have a share in the value of the property, which can be equal or not. They are at will as to who they can leave their share of the property who. If the shared owners are married, the other party’s share will be passed on to their partner. However, if they're only cohabiting, the share can be passed on to whoever they wish to. | When going through a divorce or a separation, the ownership of the property can be worked in any of these ways:
The separation or divorce itself is bad enough. To add insult to injury though, you will have to determine who will own the home, who has the right to live in it, and how your financial settlement will be affected by how the changes in ownership will happen. The first and possibly most important thing you should consider is to protect your rights to the property as soon as it is clear that you are separating. |
Transfer or Change of Ownership You have the option of changing the form of ownership from joint tenants to tenants in common, or vice versa. The advantage of changing it from joint tenants to tenants in common is that your ex partner will not automatically inherit your share of the property should you pass away before the divorce or the dissolution of your marriage. | Severing the Joint Tenancy Changing joint ownership is called severing the joint tenancy. Doing this makes you able to still have control over half of the property. A new will must be made to specify who should inherit each of your shares of the property. If you're living in England, you may not need to other party's agreement when severing your joint tenancy. |
What if the property is registered under one name?
The entire value of the property should be taken into account when making decisions on financial settlement when it is registered under one name.
If you're not the legal (registered owner) and in a civil partnership (or married), you can still live in the property until the divorce is finalised. As soon as it happens, you're not legally allowed to remain in the property indefinitely. However, your former partner cannot just throw you out of the house without proper notice.
What if the property is in someone else's name?
If the property is registered in someone else's name, like a company, a trust, or a relative, you may not be able to claim any interest on it. But it should still have an impact on how your finances are settled, depending on the situation.
The entire value of the property should be taken into account when making decisions on financial settlement when it is registered under one name.
If you're not the legal (registered owner) and in a civil partnership (or married), you can still live in the property until the divorce is finalised. As soon as it happens, you're not legally allowed to remain in the property indefinitely. However, your former partner cannot just throw you out of the house without proper notice.
What if the property is in someone else's name?
If the property is registered in someone else's name, like a company, a trust, or a relative, you may not be able to claim any interest on it. But it should still have an impact on how your finances are settled, depending on the situation.
What can the court order about the property and its ownership?
Irrespective of how you and your partner want to involve the court in settling your assets, you might want to know what the court can order. They have different options when making a decision as to how the property should be divided.
Irrespective of how you and your partner want to involve the court in settling your assets, you might want to know what the court can order. They have different options when making a decision as to how the property should be divided.
- For instance, the current ownership may be ordered to stay the same and one of the partners can still stay in it until the children are 18, or until they finish secondary school.
- The property's ownership may also be transferred to one of the partners and the other might surrender their share in exchange for a bigger savings or pension share.
- The ownership may be transferred while the other partner retains an interest on the property to be cashed in when the property is sold. The claiming party may be paid in lump sum or on a fixed percentage, and their interest can be protected by enlisting a charge against the property through a governing land registry office.
- The property may also be sold and its proceeds are equally split between the partners.
Long Term Planning
When the separation or divorce is looming ahead, you and your partner might want to sit down and talk about your ability to afford staying in the property or the need to sell it right away (or in the future).You may also want to decide, if you don't have to sell it, if you want the property to remain a family home for one of you.
What about the mortgage payments?
Regardless of how you decide on the property's ownership, always be updated with your mortgage payments. Remember that any non-payment or late payment will incur extra costs and affect your credit score. This may lead you to finding it difficult to borrow in the future.
And if the separation is inevitable, you might want to talk to your lender immediately to explain your circumstances so they can offer you plausible options.
Who pays for the mortgage following the divorce/separation?
If the property is registered in both names, you will both be liable for the payments. So, if the repayments are delayed, the lender has the right to demand the payment of the entire remaining amount from either of you.
If you were in a civil partnership or married, the court can decide on who will have to pay maintenance to the other - this includes the cost of mortgage repayments.
When the separation or divorce is looming ahead, you and your partner might want to sit down and talk about your ability to afford staying in the property or the need to sell it right away (or in the future).You may also want to decide, if you don't have to sell it, if you want the property to remain a family home for one of you.
What about the mortgage payments?
Regardless of how you decide on the property's ownership, always be updated with your mortgage payments. Remember that any non-payment or late payment will incur extra costs and affect your credit score. This may lead you to finding it difficult to borrow in the future.
And if the separation is inevitable, you might want to talk to your lender immediately to explain your circumstances so they can offer you plausible options.
Who pays for the mortgage following the divorce/separation?
If the property is registered in both names, you will both be liable for the payments. So, if the repayments are delayed, the lender has the right to demand the payment of the entire remaining amount from either of you.
If you were in a civil partnership or married, the court can decide on who will have to pay maintenance to the other - this includes the cost of mortgage repayments.
How Can We Get The Mortgage Sorted?
These are your options if you don't want to worry yourselves of the mortgage any longer: Pay It Off See if you can settle the full remaining balance and pay it off so you or your ex-partner can own the property right away. You may also consider getting a court order to pay either:
Lenders generally take maintenance into consideration as a source of income when determining how much you can borrow, but may need a copy of the formal agreement for the payment including the duration. You Can Transfer the Mortgage When the ownership is shifted from shared to any of the partners, the mortgage is generally transferred to who eventually owns the property. Mortgage lenders at this point will need to know and be assured that the person who assumes the mortgage can keep up with the repayments. | Act As a Guarantor For Your (Ex) Partner In some instances, the person who relinquishes their interest in the property can act as a guarantor; which makes them liable (fully or partially) for the mortgage should the other party fail to keep up with the repayments. If you're going to do this, be reminded that your future plans of buying your own home may be affected. Changing Mortgages You can make things more affordable by going to a different lender with a better deal. Sell the Property It is a plausible option and you may not be liable for Capital Gains Tax if this is your only or main home. Tax may be imposed on your share under these conditions:
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However you decide on the ownership of the property, you are very likely to need to assistance of a diligent conveyancer well versed with divorce situations. Your divorce lawyer may have limited experience on the transfer of ownership but they sure could work with the settlement of the ownership. If you don't know how to go about the process itself, you can right ask for conveyancing quotes right here and let's get you a skilled conveyancing solicitor to help you through it.