How & When to Sell Your House During Divorce in Surrey

It can be stressful enough to move house, let alone sell your house while going through a divorce. However, knowing where to start, and what comes next, can make you feel more confident in your decisions.

Before you decide to sell your matrimonial home in Esher, Hinchley Wood, Claygate or Cobham, read our guide. To make selling during a divorce feel a bit more approachable, we’ve broken down the process of selling during a divorce step-by-step.

How to approach selling a house during separation & divorce

Step 1: Understand Your Legal Position

Divorces are complex, so it’s important to seek legal advice early in the process. As joint owners, both spouses must agree to the sale – or one spouse can get a court order. A husband or wife can’t sell the house in the divorce without the knowledge of the other party. If there’s one sole owner, their spouse can register matrimonial rights and must give consent to sell.

Step 2: Decide When to Sell Your House During Divorce

There’s room to decide if you want to divorce or sell the house first – although there are certain implications in each scenario.

Before Divorce

You can sell a house before the divorce is final and use the proceeds to settle joint debts or cover legal costs. However, there can be less legal protection in asset distribution without a finalised settlement in place, and there can be tax implications.

During Divorce Proceedings

You must get consent from both parties to sell, and again, there are risks to selling before the court has approved any financial agreements.

After Divorce

If you sell the house after the divorce is finalised, you have the protection of greater financial clarity. However, waiting until after the divorce can open you up to capital gains tax if you transfer assets to one partner.

Step 3: What If You Can’t Agree on Selling?

If you can’t agree on selling, you can try mediation at a cost of around £150 per person. The Family Mediation Council holds a register of local mediators. As a last resort, you can seek a court order if your spouse refuses to sell the house. If you need a financial order, can take 3 months or more with a court fee of £313.

Step 4: Alternatives to Immediate Home Sale

You don’t always have to sell the house in a divorce, there are alternative options to consider. One spouse can remove the other from the joint mortgage and buy out the other’s share with a transfer of equity. Legal and General estimate that 18% of couples over 50 choose this route. Otherwise, you can offset the property’s value with other, equivalent assets or defer the sale.

To avoid selling the house immediately in the divorce, perhaps to give your young children stability until they reach a certain age, you may consider a Mesher Order. These deferred sale orders allow one person to live in the property while the other moves out, retaining ownership. You could equally delay the sale until remarriage, or to wait for better market conditions.

Step 5: Financial Considerations

Consult a financial adviser as well as a divorce solicitor as some financial considerations may not be immediately obvious. For example, you must establish the affordability of mortgage repayments. If you both remain on the joint mortgage but one party will pay the bills, then both of your credit scores will be affected if they fall into mortgage arrears with your mortgage lender.

Then there are additional costs, such as estate agent fees and solicitors’ fees. A transfer of equity between spouses won’t normally attract stamp duty land tax, inheritance tax or capital gains tax, but this ends with the decree absolute. There are further complexities, so always get professional advice.

Step 6: Practical Steps for Selling During Divorce

Once you and your former spouse have made the decision to sell as part of the divorce, it’s time to handle the house sale itself. It goes without saying, this will be easier if both parties approach the transaction with professionalism.

• Arrange a professional valuation of the family home
• Set a realistic asking price based on the professional appraisal (you may consider pricing competitively to encourage a quick sale)
• Cooperate with your ex-husband or ex-wife on decisions involving the estate agent and home viewings
• Prepare the property for sale to attract a buyer
• Handle offers and negotiations calmly even at an emotional time

No two divorces are alike, and it can help to seek expert advice before making a decision about selling the family home. If you would like to discuss selling your house in Cobham or around Esher, Hinchley Wood and Claygate, we will be glad to assist. Contact Davies Property Partners today.