When decisions are being made about how to split your assets, property is usually a key consideration. Whether you own one property or several properties, you need to determine whether they should be retained or sold.
With estate agents returning to work in mid-May, the housing market is open and viewings are resuming – albeit cautiously and with the necessary precautions. This is promising news, but these are unprecedented times.
Despite initial reports of a rebound in potential purchasers since lockdown measures were eased, the property market remains uncertain. Many people are still concerned about their job security which could affect their desire and ability to move. Lenders may also become more stringent in their requirements for lending which could affect mortgage capacities. These factors could bring volatility to the property market and prices.
Even those with substantial assets, who do not need to sell any property to reach a fair settlement, may struggle to agree how property should be distributed if estimated values fluctuate.
For many divorcing couples, the family home will be their main asset. Where sale of the family home is required for you both to be able to rehouse appropriately, a stall in sales could result in you being left in limbo. During this time, try to take a realistic and pragmatic approach to address the situation. One of you may be able to rent alternative accommodation for a period of time. If you do not have the income to do this, it may be possible to release equity from the family home. Whatever arrangements are made, it will be helpful if you are understanding and work together to try to find an interim solution that is fair to everyone.
Where an order for sale is required, you may wish to consider including provision for each of you to receive a percentage of the net proceeds of sale rather than a fixed amount. This would help to ensure that any risks or benefits of housing market fluctuations are shared.
At Allard Bailey Family Law we can help you to lead negotiations with your former partner and reach a temporary or permanent financial settlement out of Court, if possible.
To book a virtual consultation or telephone appointment with one of our team, please call 020 7993 2936 or complete the Contact Form on this page.