Division Of Property During Divorce
Divorce, or the break-down of a relationship, is one of the main reasons for people needing to sell property. Despite the recent drop in the divorce rate, nearly half of all new marriages are still doomed to end in divorce. The emotional fall-out of divorce is difficult enough, but when assets need to be divided things can get really messy. Deciding the fairest way to split a couples assets can be difficult, if the couple cannot agree on how to divide their assets it will be down to the courts to decide and usually results in the property needing to be sold and the sale proceeds being split 50/50.
The division of assets becomes particularly difficult when the couple in question were never married. More and more couples are choosing not to marry, but they still buy houses together and have children. When an unmarried couple splits up, only those who made a financial contribution to the assets are automatically included in the division of those assets after the relationship breaks down, so it can be particularly difficult when the break-up is not amicable.
What are your options for the jointly-owned property in the event of divorce or relationship breakdown?
Buy out your ex: You can buy out your ex’s share in the property; if it is an agreed part of a divorce settlement then you won’t have to pay stamp duty on the sale. If you are not married, then you will have to pay stamp duty on the value of the share you are buying out. For example, if the property is worth £500,000 and you are buying out your ex-partner’s 50% share, then you will pay £2,500 of stamp duty, which is 1% of the £250,000 share in the property.
Sell your home and divide the sale money: You can sell your house and split the funds, which will mean a clean break for everyone involved. However, agreeing on how to sell a property – coming to terms on upon the acceptance of any offers and what price to market it at, will mean a lot of discussion between the 2 property owners and add to the emotional stress of the break-up. Selling property can take a long time; it may be preferable to look quick house sale options, such as property auctions or fast purchase property companies, like National Homebuyers, in order to sell your house fast, cut ties with your ex-partner as quickly as possible and move on with your life.
Rent the property and split the income: You may choose to rent out the property, but remember this will tie you to your ex-partner for however long you wish to let the property. Landlords have legal obligations towards their tenants and you should make sure you are aware of these before going down the rental route. You can find out what your responsibilities are with the Residential Landlords’ Association and the National Landlords’ Association. You will also have to complete a self-assessment tax return and pay income tax on the rental income you make; you can find out further information with HM Revenue and Customs.
Whatever you decide to do with your shared home, in the event of divorce or relationship breakdown, make sure you are aware of all of the legal implications and ensure you divide the assets fairly. If the situation is amicable enough to come to a mutual agreement you will save yourselves a lot of time, money and stress. You can find advice and information on what to do if you are considering divorce, or ending a relationship, with the Citizens Advice Bureau.
About National Homebuyers
National Homebuyers is based in West Sussex and have been helping to solve property problems for over 15 years. National Homebuyers are a leading UK property buyer, assisting thousands of people by offering a unique service and specialising in a quick and hassle free sale for your home – We buy any house in the UK.
If you have a property or house you are trying to sell fast, don’t delay any longer, contact National Homebuyers to arrange your valuation today on 08000 443 911.