What is Divorce Property Settlement?
If you and your partner are divorcing or ending a civil partnership, decisions will need to be made regarding money and property. Some couples are able to agree on a plan of action for their assets without needing to go to court, as a solicitor has the power to make any decisions legally binding, including any agreement on child maintenance. However, some separating partners prefer to let the courts make a decision about who gets what when the divorce is finalised.
The final settlement
Although it can sound somewhat heartless, a divorce settlement is a financial arrangement or understanding that is achieved upon divorce. It is a final legal agreement between two adults for documenting the terms of their divorce. Any individuals who fail to meet, or go back on their final settlement, could face legal proceedings.
Whilst dividing money is a relatively straight forward process, doing the same with a home is much more of a grey area. Understandably properties cannot be split in half, but more often than not they hold the biggest monetary value for most couples.
Just like deciding who gets what financially when a divorce is granted, it also needs to be decided on what happens to the property.
There are a number of options available to you:
- One partner remains
- One partner remains with children
- One partner buys the other out
- Sell the property
Understandably, each option comes with its issues and will sometimes favour one party over the other. It is worth remembering that there are no clear rules as to how assets are divided during divorce. However, if there are children in the home under the age of 18 the courts will take their welfare as paramount and one parent is often ordered to remain in the home with the dependants.
Couples without children, or whose children have grown up, may decide to sell their home. Couples without any dependants sometimes prefer to sell their home and split any money, once the mortgage has been paid off, equally between them. This means both parties can have financial stability moving forward and perhaps buy another property.
Should I go for the house?
Many people who are going through a divorce think they can call the shots when it comes to keeping the family home. Everything during a divorce is either agreed amicably with your ex-spouse or decided by the courts: you cannot simply go after something out of sheer want. During a divorce the welfare of any children comes first. If there are no children involved, what happens to the property can either be agreed by both individuals or via the courts.