Selling a House During Divorce

Divorce can be one of the most challenging periods in a person's life, and deciding what to do with the family home is often one of the biggest decisions you'll face. For many couples, the property is their most valuable asset, making it a key part of any financial settlement.

While some couples choose to sell the property before their divorce settlement is finalised, others wait until financial arrangements have been agreed. The right approach will depend on your circumstances, including your finances, mortgage commitments, children, and future housing plans.

Understanding your options can help you make an informed decision and avoid unnecessary delays during the divorce process.

Should you sell your house before or after a divorce settlement?

There is no single right answer when it comes to selling a house during a divorce. Some couples benefit from selling early, while others are better served waiting until a financial agreement has been reached.

Selling before divorce

Selling before a divorce settlement can provide certainty over one of the largest assets involved in the separation. By selling the property and releasing the equity, both parties have a clear understanding of the funds available when negotiating the financial settlement.

An early sale can also reduce ongoing financial pressures. Mortgage payments, maintenance costs and household bills can quickly become difficult to manage if one person has moved out or household income has changed.

However, selling before financial arrangements are finalised may not always be suitable. If there is disagreement about how the proceeds should be divided, or if children are involved, it may be sensible to seek legal advice before proceeding.

Selling after divorce

Waiting until a divorce settlement has been agreed upon can provide greater clarity about how assets should be divided. Financial Orders can specify how the proceeds of a future property sale will be distributed, reducing the risk of disputes later.

This approach may also be appropriate where one partner wishes to remain in the property temporarily, particularly if dependent children are living in the home.

The downside is that both parties may remain financially connected through the property and mortgage for a longer period, which can delay moving on with their lives.

Do you have to sell your house if you get divorced?

Not necessarily. While selling the family home is common during divorce, it is not always required. The decision will depend on the value of the property, the wider financial circumstances of both parties, and any arrangements relating to children.

When selling is required

In some cases, selling the property is the most practical solution. This may happen when:

• Neither party can afford the mortgage on their own

• There is insufficient equity to buy out the other party

• Both spouses want access to their share of the equity

• The court determines that selling is the fairest outcome

Selling allows the proceeds to be divided according to the agreed financial settlement, giving both parties a clean financial break.

When you may be able to keep the property

There are circumstances where one spouse can remain in the family home following divorce. This may be possible if they can afford the mortgage independently or have sufficient funds to purchase the other person's share of the property.

Courts may also consider arrangements that allow children to remain in the home until they reach a certain age or leave full-time education. In these situations, the property may not be sold immediately.

What are the alternatives to selling the family home?

Selling isn't the only option available during divorce. Depending on your circumstances, there may be several alternatives worth considering.

Buying your partner out

One of the most common alternatives is for one spouse to buy the other person's share of the property.

This usually involves agreeing on a property valuation and calculating how much equity each person is entitled to receive. The remaining owner may then remortgage the property to release the necessary funds.

Offsetting against other assets

Instead of selling the property, one spouse may retain the home while the other receives a larger share of other assets.

This could include savings, investments, pensions or other property holdings. The overall objective is to achieve a fair division of assets across the financial settlement.

Mesher orders

A Mesher Order allows the sale of the family home to be postponed until a specific event occurs. 

This is commonly used when children are involved. For example, the property may remain unsold until the youngest child reaches adulthood or finishes full-time education. Both parties retain an interest in the property until it is eventually sold.

Transfer of equity

A transfer of equity removes one person from the property's ownership while transferring their interest to the remaining owner. This option is commonly used where one spouse wishes to remain in the property and can satisfy the lender's affordability requirements.

It is important to remember that ownership and mortgage liability are separate issues. A lender must approve any changes to a joint mortgage.

Can one partner force the sale of a house during divorce?

When emotions are running high, it isn't uncommon for one spouse to want to sell the family home while the other wants to remain in the property. If both parties cannot reach an agreement, the situation can become more complicated.

What happens if one spouse refuses to sell?

If a property is jointly owned, one person cannot usually force a sale without either the agreement of the other owner or a court order.

In many cases, solicitors will encourage both parties to negotiate a solution as part of the wider financial settlement. This could involve agreeing on a future sale date, arranging a buyout, or exploring alternative solutions that meet both parties' needs. However, if an agreement cannot be reached, the matter may need to be resolved through the courts.

Read more: Can you sell a house if one partner refuses?

Applying for a court order

The family court has the power to decide what happens to the family home as part of a divorce settlement. When making a decision, the court will consider a few aspects, including:

• The welfare of any dependent children

• The financial needs of both parties

• Income and earning capacity

• The value of the family home and other assets

• Future housing requirements

Depending on the circumstances, the court may order that:

• The property is sold immediately

• One party remains in the property for a specified period

• Ownership is transferred to one spouse

• The sale is delayed until a future event occurs

With every case being different, it's important to seek professional legal advice if there is a dispute regarding the family home.

What are your property rights during divorce?

Many people assume that ownership is determined solely by whose name appears on the property's title deeds. In reality, divorce courts have broad powers to consider all matrimonial assets when determining a fair financial settlement.

The family home is often treated differently from other assets because it is usually considered a matrimonial asset, regardless of whose name is on the deeds or mortgage. When deciding how property should be divided, courts in England and Wales typically consider:

• The financial needs of both parties

• The standard of living enjoyed during the marriage

• Contributions made throughout the relationship

• The length of the marriage

• The welfare of any dependent children

This means there is no automatic 50/50 split in every case. Instead, the court aims to achieve a fair outcome based on the specific circumstances of the divorce. For couples who can reach an agreement independently, a Financial Order can formalise arrangements and make them legally binding.

Where there are shared assets or income disparities, it’s always recommended to check resources like Citizens Advice’s divorce guidance and the government website for divorce proceedings as early as possible.

What happens to a joint mortgage after divorce?

Even if one person moves out of the family home, both parties remain responsible for a joint mortgage until the lender agrees otherwise. This is an important consideration when deciding whether to sell, transfer ownership or retain the property.

Can I get a new mortgage?

If you wish to keep the property after divorce, you will usually need to demonstrate that you can afford the mortgage on your own. If affordability requirements are met, it may be possible to remortgage the property solely in your name.

Removing a partner from the mortgage

Removing a former spouse from a mortgage is not as simple as updating the title deeds. The lender must agree to release them from their mortgage obligations, which will normally involve a full affordability assessment of the remaining borrower.

If the lender is unwilling to approve the change, selling the property may become the most practical solution.

Until a mortgage is formally transferred or redeemed, both parties remain jointly liable for the repayments. Missing payments can affect both individuals' credit records, even if only one person is living in the property.

Read more: Selling a house with a mortgage

Can you sell a house before a divorce settlement is finalised?

Yes, it is possible to sell a house before a divorce settlement has been finalised, provided both owners agree to the sale.

Many couples choose this route because it allows them to release equity and simplify the financial aspects of their separation. Once the property has been sold, the proceeds can either be divided immediately or held until a Financial Order determines how the money should be distributed.

However, it's important to consider the wider financial implications before proceeding. The family home is often one of the largest assets involved in a divorce, and selling too early without legal guidance could complicate future negotiations.

If you're considering selling before the divorce is finalised, obtaining legal advice can help ensure your interests are protected and that any proceeds are dealt with appropriately.

Costs and tax considerations when selling a house during divorce

Before selling a property during divorce, it's important to understand the costs involved and how the sale could affect your overall financial settlement.

Selling costs

Just like any property sale, selling a house during a divorce comes with associated costs, which may include:

• Estate agent fees

• Solicitor or conveyancing fees

• Mortgage redemption charges

• EPC costs

• Removal expenses

These costs are usually deducted from the sale proceeds before the remaining equity is divided between both parties. If the property requires repairs or improvements before being marketed, you may also need to agree on how these costs will be covered.

Capital Gains Tax considerations

For many couples, Capital Gains Tax (CGT) will not apply when selling the family home because it qualifies for Private Residence Relief.

You do not pay Capital Gains Tax (CGT) when you sell (or ‘dispose of’) your home if all of the following apply:

• you have one home and you’ve lived in it as your main home for all the time you’ve owned it

• you have not let part of it out - this does not include having a lodger

• you have not used a part of your home exclusively for business purposes (using a room as a temporary or occasional office does not count as exclusive business use)

• the grounds, including all buildings, are less than 5,000 square metres (just over an acre) in total

• you did not buy it just to make a gain

If any of them apply, you may have some tax to pay.

Tax rules can be complex and change over time, so it's always advisable to seek independent financial or tax advice before selling.

Read more: Avoiding Capital Gains Tax on Your Property

Selling your house quickly during a divorce

Divorce can place significant emotional and financial pressure on both parties. In some situations, achieving a quick sale can help reduce uncertainty and allow everyone involved to move forward.

Selling on the open market

The traditional route is to sell through an estate agent. This can help you achieve full market value, particularly if local market conditions are favourable. However, it's important to remember that open market sales can take several months to complete.

During this time, both parties may continue to be responsible for mortgage payments, maintenance costs and household bills. There is also the possibility of chains collapsing, mortgage issues, or buyers withdrawing before completion, which can further delay proceedings.

Selling to a cash house buyer

For couples who need certainty and speed, selling to a professional cash house buyer can be an alternative option. A cash sale removes many of the delays associated with traditional property transactions because there is no onward chain and no reliance on mortgage approvals.

While a cash sale may not achieve the same price as an open market sale, many sellers value the speed, certainty and reduced stress it can provide during an already difficult period.

If you're looking to sell your house fast during a divorce and need a hassle-free sale, our team can provide a free cash offer and explain your options.

Frequently Asked Questions