Selling house before divorce

DevonCream · 2023-11-01T18:49:15+00:00

Me and H have split and have started divorce proceedings. It's about as amicable as can be which I'm grateful for. Is there an issue with selling the house which we jointly own before the divorce comes through? We've agreed between us to split 55/45 after mortgage paid back. Can we do that, take our own shares of the equity and buy our own properties all before divorce comes through, if we agree on everything?

LemonTT · 01/11/2023 21:29

It’s your house you can do whatever you want with it.

However if you do this you need to understand the risks for both of you. Because buying 2 new homes is expensive and you will tie yourself into a long term mortgage commitments. Undoing these purchases might be costly of either of you regret the agreement or circumstances change.

Londonscallingme · 01/11/2023 21:35

So I think the ‘risk’ is that technically if things go sour down the line your 55/45 split wouldn’t be legally binding. If a judge retrospectively decided on a different split of assets then you would need to unwind that. I guess that may or may not be a problem depending on your ability to bridge any gap with cash. Obviously you would hope both sides would honour the agreement but until the divorce is finalised I guess it’s not guaranteed.

Berlioze · 01/11/2023 21:41

A divorce is separate to house sale, you can do it in in whichever order you wish. I'd say a consent order regarding the split of assets/finances would be wise, this would be approved by the court and then the parties need to adhere to it. I am going through the divorce myself now, although unlike in your case, it's likely the house sale will occur after decree absolute is in place. We will have a financial order in place, we agree re our assets and finances but I still think it's a wise thing to do. Talk to a solicitor.

Original poster

DevonCream · 01/11/2023 22:03

Londonscallingme · 01/11/2023 21:35

So I think the ‘risk’ is that technically if things go sour down the line your 55/45 split wouldn’t be legally binding. If a judge retrospectively decided on a different split of assets then you would need to unwind that. I guess that may or may not be a problem depending on your ability to bridge any gap with cash. Obviously you would hope both sides would honour the agreement but until the divorce is finalised I guess it’s not guaranteed.

So would a judge have to rule on finances further down the line? Or if we have an agreement signed between us, can we get away without? Trying to do this as much on our own without having to pay for solicitors. If by the time we have divorced, the house is sold, and we've split the money in the way we want to split, is there anything else to do?

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gotomomo · 01/11/2023 22:04

We sold, bought new houses etc - as long as you are both in agreement and it's not too uneven the courts will rubber stamp whatever you decide.

Berlioze · 01/11/2023 22:06

You can ask a solicitor to draft a consent order regarding your finances if you both agree. This gets filed at court and the judge approves it. I think this should take place after decree nisi, but ask your solicitor.

Original poster

DevonCream · 01/11/2023 22:07

gotomomo · 01/11/2023 22:04

We sold, bought new houses etc - as long as you are both in agreement and it's not too uneven the courts will rubber stamp whatever you decide.

That's good to know. I also have a work pension. He doesn't. But he has insisted point blank that he doesn't want my pension. Will a court agree to that, and let me have it ringfenced, if it doesn't seem fair on him?

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Londonscallingme · 01/11/2023 22:07

You don’t need to get the courts involved, all I’m saying is that if one of you suddenly had a change of heart and insisted on going to court, technically you (or he) could do that. A PP has suggested a consent order which sounds Like it would safe guard against possible future issues. I’m sure it will all stay amicable but it wouldn’t be unheard of for things to go sour.

Original poster

DevonCream · 01/11/2023 22:07

Berlioze · 01/11/2023 22:06

You can ask a solicitor to draft a consent order regarding your finances if you both agree. This gets filed at court and the judge approves it. I think this should take place after decree nisi, but ask your solicitor.

Would a judge push back on a 55/45 or 60/40 split if both individuals agreed on it and wanted that?

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Mumof3confused · 01/11/2023 22:09

You need a consent order, otherwise it could come back and bite you in the bum down the line. If your pension is very large, the court might have some questions around why your ex doesn’t get any share. Are there any other assets or liabilities?

Berlioze · 01/11/2023 22:11

DevonCream · 01/11/2023 22:07

Would a judge push back on a 55/45 or 60/40 split if both individuals agreed on it and wanted that?

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How long is a piece of string type question. Obviously the entirety of your financial circumstances would be taken into account, your solicitor will advise you, this isn't something MN can or should assess. It really is worth forking our few hundred quid for solid advice on this.

Fourmagpies · 02/11/2023 02:23

DevonCream · 01/11/2023 22:07

Would a judge push back on a 55/45 or 60/40 split if both individuals agreed on it and wanted that?

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If you can show why you've agreed that split and that one of you won't be unduly affected negatively by it, and that you've both had legal advice and therfore understand the implications, then it could be signed off. We had a 60/40 split of all assets in my favour but I have kids 100% and he could potentially earn far more than me (though currently earns less).

Have a read of the Advice Now guides pinned at the top of the page, particularly the one on finances as it gives some examples and what the judges consider.