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Divorce/separation

Here you'll find divorce help and support from other Mners. For legal advice, you may find Advice Now guides useful.

When to put house on market?

3 replies

Roccocoo · 15/02/2023 14:46

Hi there just after some advice about house sale. Can’t submit financial order until June, when does the family house go on the market? We both need equity from it to buy new homes. I know it can take months to sell but didn’t know how it all works with the financial order. Thank you.

OP posts:
Jas683 · 15/02/2023 14:57

Hi.

I started divorce in October and home on the market one month later. Sale exchanged and the only decision left is when the money can be released to both of us.

Decree nisi not applied for either. Just ensure, if you have one, that your solicitor is aware of any plans to put on the market.

Reply2whentoputhouseonmarket · 15/02/2023 19:21

Are you sure you have full and frank disclosure of all of the assets of the marriage? Before you agree to the sale of the property and split of proceeds?
E.g. pensions in some cases can be more valuable than the former marital home.

To know what a fair split of assets is and to reach a financial settlement divorcing parties need to know what the assets of the marriage are, and what each asset is worth.

What does full and frank disclosure look like?
Look at a Form E. A long document in which each party sets out their assets, income, and financial needs. You can see in it the assets that are taken into consideration upon divorce and financial settlement, for example property (the former marital home), pensions, stocks and shares etc. It also lists the documents needed that show the value of assets for example CETVs (cash equivalent transfer values of pensions - which can be requested from pension providers).

To find out what some assets are worth an independent expert can be used. Property can be valued by an expert - estate agents, pensions by CETV and / or a pension on divorce expert (PODE) report and so on. It is important to decide what needs a valuation by an independent expert and factor in the costs of these. Pensions can be very valuable – equivalent or more than the value of the former martial home in some cases. Divorcing parties might hold different types of pensions (not like-for-like, so difficult to compare without an expert). Circumstances might be complex for example an age difference or pensions in payment. One party may have stayed at home to look after children.

What do you need? Deciding how to distribute assets
When deciding how to distribute a couple’s assets and income the court has to apply a checklist of factors set by statute. The relevant statute is section 25 of the Matrimonial Causes Act 1973. These factors will need to be applied in every case, regardless of whether you are engaged in court proceedings or negotiating your own settlement. These are often called the Section 25 factors, which the court will take into account when deciding how to distribute assets upon divorce or dissolution.

Section 25 Factors
images.ctfassets.net/o8luwa28k6k2/2cpp2mEMwBJWJLuzTiTruB/b5397e7459154fad8927826a2c99acdd/section-25-expert-guide.pdf

The income, earning capacity, property, and other financial resource which each of the parties to the marriage has or is likely to have in the foreseeable future is taken into account. First consideration is given to the welfare (while a minor) of any child of the family who has not yet attained the age of eighteen.

The needs of each divorcing party are taken into account and as I understand it 50 / 50 is the starting point – so unequal shares based on circumstances and needs is possible, for example 60 / 40.

Not getting full and frank disclosure?
Full and frank financial disclosure is required and usually provided when Form E is exchanged.
If after Form E there is missing information / evidence Questionnaires may be exchanged to retrieve it.
If still missing after that Deficiencies are exchanged.
A solicitor’s letter can be sent to retrieve financial information evidence.
A Court Order can also be applied for to gain financial information / evidence / valuations that is missing / essential.

Info & Advice
These offer a free advice session about pensions on divorce and separation www.moneyhelper.org.uk/en/family-and-care/divorce-and-separation/divorce-or-dissolution-how-we-can-help-with-your-pension
Free advice line (busy so keep trying) rightsofwomen.org.uk
Guides on divorce and financial settlement
www.advicenow.org.uk/guides/how-apply-financial-order-without-help-lawyer

Pensions on divorce
www.sharingpensions.co.uk/penaudit3.htm
www.mediateuk.co.uk/the-ultimate-guide-to-pensions-on-divorce/
www.nuffieldfoundation.org/news/new-good-practice-guide-addresses-shortfall-in-understanding-of-how-to-treat-pensions-on-divorce
Valuation of pensions – pensions on divorce expert report
www.collinspensionactuaries.co.uk no relation – useful website
www.collinspensionactuaries.co.uk/pension-data-collection/ templates for information required

Legal advice
This link gives you an indication of hourly rate for solicitors
www.gov.uk/guidance/solicitors-guideline-hourly-rates
Some organisations offer free advice from solicitors and barristers rightsofwomen.org.uk/get-advice/ On their FAQs page…”Our Legal Officers and Volunteer legal advisors are all solicitors and barristers”.
Some family solicitors offer an in initial free consultation and some a fixed fee rather than hourly.
Some barristers can be directly instructed e.g., via Clerksroom Direct
Mumsnet suggest www.advicenow.org.uk/tags/separation-divorce-and-dissolution-civil-partnerships

Look after the old(er) woman you will become, financially :)

Timeforachange2023 · 15/02/2023 20:08

Roccocoo · 15/02/2023 14:46

Hi there just after some advice about house sale. Can’t submit financial order until June, when does the family house go on the market? We both need equity from it to buy new homes. I know it can take months to sell but didn’t know how it all works with the financial order. Thank you.

I think the answer is that it varies depending on the circumstances.

If you sell up and separate the proceeds as per your “agreement” in the draft financial consent order before a judge approves it, you always run the risk of the court not agreeing it’s a fair split and that creating problems further down the line. However, that always applies until the judge signs it off.

In my case, because of other things that happened after separation, we had already sold the home and split the proceeds and bought new homes, prior to the consent order being agreed. We had both taken legal advice to arrive at what was a deemed a fair (unequal) split of capital (73:27).

We didn’t encounter any issues. The order was approved. Based on my experience, I would say the sooner it goes on the market, the better. However, there will be others that have had a different experience and would offer different advice.

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