No one expects that the property they buy with a loved one will be anything other than shared, but unfortunately it’s not how things always work out.
It’s therefore worth having an idea of what happens to shared property in the event of a divorce.
Understanding shared property
The main example of a shared property is the home that you, your partner and any dependants lived together in before the relationship broke down.
However, any other property bought during a marriage can be considered shared. The case is the same if the assets were purchased before marriage and no prenup was signed.
Legal implications
When it comes to a divorce, the idea is that finances are split evenly to ensure neither person is made worse off. But there is no specific rule about how assets are divided, meaning legal advice is often sought to make the most of the flexibility in the system.
This does not mean that all property must be sold and divided equally between the two parties, though. One person can buy the other out of their share and avoid having to make a sale, for example.
Types of shared property
Property that can be considered shared includes:
- The primary residence: Where you lived together during your relationship.
- Holiday homes: Any additional properties owned and used solely by you.
- Rental properties: Homes that you own but rent out to tenants.
Other personal assets such as pensions, savings and investments will also be taken into account when making financial arrangements during divorce.
Property division methods
There are many different ways that shared property can be divvied up. These include:
- Mediation: If the relationship has ended on amicable terms, mediation can be a straightforward way to decide on the split of shared property. A third person who doesn’t take sides, known as a mediator, helps you come to a fair agreement. It does not require a solicitor or the involvement of a court so is usually the cheapest method.
- Negotiation: This involves one person making a financial offer to the other, typically through a legal representative. When a counteroffer is received, the negotiations on a compromise that keeps everyone happy can begin.
- Court intervention: A judge will be required to settle the issue when an agreement cannot be reached by the other methods. It is claimed that around 20% of divorces go to court when they don’t need to, so it’s worth thoroughly exploring all other options before this.
Tips to be amicable
Maintaining a clear line of communication is key to getting a quicker settlement in divorce, but that’s often easier said than done following the breakdown of a relationship. Keep these key things in mind to try to get through the process as amicably as possible:
- Don’t try to get revenge
- Keep the children out of it
- Listen properly and be understanding
- Don’t rush them
- Stay composed and rise above unreasonable behaviour
