Very often the most valuable asset to be divided between a couple upon separation will be the family home.

 

The decision as to what happens to the family home will be dependent upon all of the circumstances of the case, for example:

  • whether there are other assets available for distribution between the parties;
  • whether there are children to consider;
  • whether there is a mortgage on the property;
  • the borrowing capacity of both parties;
  • the length of the marriage; and
  • potentially, whether one spouse (or their parents) have contributed to the family home more than the other.

The Court will want to see that the children’s needs are met first and foremost, but the Court will be mindful of both spouses’ financial needs upon divorce.

 

Before considering what should happen to the family home, the value of the family home needs to be ascertained. If the family home is to be sold, the value will be easy enough to gauge – the value will be whatever a buyer is willing to pay for it. When the family home may be kept by one spouse, however, then a value will need to be attributed to the property.

 

Sometimes, a value can be agreed fairly easily – for example, it may be appropriate to ask three estate agents to come and value the family home and the response from all three agents may be more or less the same. Sometimes, however, spouses may disagree entirely on the value of the family home. With more unusual properties, this may be the result of each spouse seeking their own valuation and those valuations returning very differently.

 

In such circumstances, a single joint expert valuation is likely to be required. A qualified and experienced agent will need to be agreed upon between the spouses, with their solicitors’ input. One letter will be sent to the agent setting out their instructions – this ensures that the agent receives neutral instructions and their opinion of the property isn’t unduly influenced by either party. There will inevitably be a cost for the agent to prepare their report, but this will be shared equally between the spouses.

 

Once the agent has prepared the report, each spouse will have the opportunity to ask questions, if they have concerns about the conclusion of the valuation, but, in general, the valuation will be considered authoritative, having been prepared by an expert on a joint basis.

 

What happens to the family home when you and your spouse divorce is an emotive matter as well as an economic one – it is not only a financial asset, but a home where memories have been made, and a place of safety and security – even more so for children. We appreciate that you are likely to have questions and the most important step is to take advice at an early stage, so as to ensure that the best outcome for you and your family is achieved.