The question of whether or not to sell the family home after a divorce depends almost entirely on individual circumstances. Divorce property decisions, such as selling or keeping a family home and who gets to live in it all have advantages and disadvantages linked to them. For example choosing to sell the family home after divorce can offer a clean break and make ongoing financial arrangements easier, However, such a final ‘clean break’ can also bring with it difficult emotions, especially if children are involved. The sale of a large asset like a family home may also have tax implications that need to be carefully analysed for the best possible outcome.
On the other hand, keeping the home enables continuity for children, especially if they can carry on living there with one parent and be able to receive visits from the other. Keeping hold of a valuable property can also prove advantageous to both parties in the divorce in certain cases too. Waiting to sell the family home after a divorce could allow an unstable financial market to settle, providing a more opportune time to sell.
Other factors to consider when making divorce home sale decisions
The period immediately following a divorce can be distressing, complicated and exhausting. It can also be an expensive time of life as the partnership breaks down and everyone involved needs to find somewhere to live – and possibly buy new furniture and fittings. Deciding to sell the family home after divorce and dividing the equity from the sale provides a clear and straightforward way to ensure each party has fund to start afresh. Choosing to sell the family home after divorce can also be good for people psychologically, symbolising a fresh start and a new life that has no ties to the past.
A sale can also eliminate financial dependency between former partners, for example by undoing a joint mortgage or freeing up capital to pay back loans or buy each other out of a joint property or business. Of course, the tax implications will need to be considered very seriously, as selling a large asset can make you liable for capital gains tax. There will also be additional expenditure around solicitors and estate agents’ fees, surveys, moving costs etc. One option could be putting the property up for rent temporarily and having both parties move out if they do not need to free up the full equity in the property right away. This keeps the asset in the hands of the parting couple while they make the final decision around whether to sell the family home after divorce or not.
Selling a house and moving to a new one is also highly disruptive, even when there is no divorce or civil partnership split involved. At a time when children may be feeling vulnerable, unsettled or upset, it could be wiser to keep the family home for a while until things calm back down and everyone can get used to the new way of life. Things such as school journeys, local friendship group and the ability to access extra-curricular activities could be affected by a house move, particularly if it is to a new town or event further afield. It could also be harder to facilitate visits between separated parents if the decision is made to sell the family home after divorce without factoring this aspect of childcare in.
All that said, keeping a joint asset when the two former partners are unable to communicate amicably can cause problems further down the line. Trying to agree on future expenditure around home improvements, repairs, extensions etc. can be tricky to navigate. Seeking legal help with this, as well as other aspects of selling an asset such as a family home after divorce is essential to help each couple make the best decision for their individual circumstances.