What happens to the family home after a divorce? Lawyer, Zanariah Webster, explains how a high-profile celebrity split has raised the issue of legal ownership amongst separating couples
When a high-profile couple chooses to divorce, the headlines often dwell on the drama unfolding.
The recent split between TV presenters Ruth Langsford and Eamonn Holmes has been no different. However, an unexpected legal move by Langford to sever the couple’s joint tenancy of the family home – meaning Holmes would not inherit her share if she died before the divorce was finalised – has highlighted the complexity of property rights when they intermingle with divorce proceedings.
For separating couples, famous or not, the question of what to do with the family home is rarely straightforward.
Financially, it’s usually the most valuable asset in the marriage. Emotionally, it is a symbol of family life, offering familiarity, safety and security when everything else is changing.
Within the divorce process, couples will find themselves faced with tough choices about what to do with the family home.
However, first it is crucial to understand how the property is legally owned, as this can shape separating parties’ options for what they can and can’t do.
How ownership changes everything
There are two primary ways a couple can legally own a property: as joint tenants or as tenants in common.
Joint tenants own the whole property together equally, rather than holding separate shares. As in the case of Langford and Holmes, this means that if one of you dies before the house is sold or the financial side of the divorce is finalised, the surviving partner automatically inherits the whole house, regardless of any Will.
If the Will divides the estate differently, ownership can be transferred through registering the death with the Land Registry.
Tenants in common are different because each person owns a defined share in the property, often 50:50, although this can vary. In this case, if one person dies, their share passes according to their Will, not automatically to the other owner.
Ruth Langsford has reportedly been granted a severance of her and Holmes’ joint tenancy agreement as part of their process of separation.
Importantly, this means that her interest is protected, and she can leave the property to whomever she wishes, if she passes away before the divorce is finalised.
This is one of the first things separating couples can do, although converting ownership to tenants in common in 50:50 shares does not predetermine the final outcome of a financial settlement.
Sell, stay, or buy out?
When a couple divorces, all jointly and individually owned assets need to be identified and valued before any financial agreements can be reached. This process is known as financial disclosure, and as part of it, the family home is treated by law as a joint asset – its value is a key consideration in any negotiations.
There are a few common ways to deal with the family home. For example, to achieve a clean break, couples may decide to sell the family home, divide the equity, and start over somewhere new. Another option is for one partner to buy out the other and take full ownership of the property.
For families with children, staying in the family home can provide some much-needed consistency during a period of upheaval. In these cases, parents have the option that one parent remains in the house until a specific date or event and then the home is sold and the equity is split.
How courts decide when couples can’t
Sometimes, couples can’t see eye to eye on the best way to deal with the house and it becomes a sticking point in the divorce. If that happens, options such as mediation can be beneficial to help couples reach a compromise. Failing that, the final option is that the decision will be made by the family court.
While every case is different, courts typically consider factors such as the children’s welfare, each spouse’s financial situation and contributions to the family, the standard of living before the split, the length of the marriage, the parties’ ages and earning capacity. Upon reaching a decision, the judge has the power to order the sale and split the proceeds, allow one partner to retain an interest for a time or take into account pensions, inheritance and other assets to ensure a fair outcome.
The overriding principle is that of fairness and to ensure that both parties’ housing and income needs are met.
Don’t leave it to luck
As the Langford and Holmes case highlights, the family home can easily spiral into a financial and emotional battleground. Whether you decide to sell, buy out your ex or get creative, it is essential to understand legal ownership, rights and plan carefully.
This is not a time for chance. Early professional advice can help to protect your home, children and future. Don’t leave it too late.
Zanariah Webster is a Senior Associate at Stowe Family Law
