How to split house in divorce

Getting a divorce is always difficult with many factors to consider such as; future care of any children, split of any savings, distribution of material assets / debts and of course the future of the family home. All these factors interrelate with each other, impacting on one and other.

If there are children from the marriage the family home often will remain in the ownership of the primary care giver. The equity from the property will go against the assets between the two parties, often this will require the person who keeps the house to remortgage, so borrowing money to pay out the other person in the divorce settlement, this is called a transfer of equity mortgage. If you also have children in some cases a court can issue a Mesher Order, this will often mean both parties will continue to have agreed stakes in the property and the sale will be sold on at a specific triggered event - such as when the children reach the age of 18 or the home is sold.

In some cases both parties may decide to sell the property, in this scenario the property is listed for sale and the money from the sale raised (after legal, solicitors and adviser fee`s are deducted) is split between the parties, again the mortgage and any other debts secured on the property will need to be repaid before the money is divided.

When going through the divorce process it is important to ensure you are keeping up with your joint mortgage repayments. Both parties are liable for any missed payments or defaults and this will impact on any future property purchase going forward by either borrower. So it is important than the person who no longer has a financial interest in the mortgage is removed from the mortgage agreement and the mortgage changes from being a joint mortgage to a sole mortgage

First Choice Finance have helped many people who are getting a divorce with there mortgage needs, we understand the different circumstances in which houses can be split and divided up during the divorce process and have helped people obtain a transfer of equity mortgage and / or find a new mortgage to purchase a new home after they have completed there divorce. We offer no obligation advice and our friendly mortgage advisers will be happy to discuss the different options and scenarios applicable to your independent circumstances.

How Do You Buy Someone Out Of A Mortgage?

As a leading established mortgage broker we can help you through the process of buying your partner out of the property. Taking you through the process step by step, then arranging the transfer of equity mortgage and removing your partner from the joint mortgage making you the sole owner of the original family home.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Security is required on immovable property.

Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

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