Selling Property Before Divorce Settlement UK

If you are searching for ‘selling property before divorce settlement UK’, chances are you are separating from your partner and have questions about your legal position. At Birch & Co, our expert family law solicitors specialise in supporting clients through the divorce process. We offer exceptional legal advice on all aspects of divorce law and practice and will ensure your interests and those of your family are fully protected.

Reach out to Birch & Co’s specialist and supportive team today. Call us on 0191 284 5030 or complete a Free Online Enquiry now to get a bespoke fixed price estimate.

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What Happens To Your Property When You Get Divorced?

When a couple divorces, their assets must be divided. Those assets might include money, shares, investments, pensions, and property.

The Courts seek to ensure that a divorce settlement is fair to everyone involved. Sometimes, this might result in a 50/50 split of the couple’s assets. Other times, the percentage split might be different.

What happens to your property when you get divorced depends on whether the property in question is classed as matrimonial or non-matrimonial property.

What Is Matrimonial Property?

Matrimonial property typically comprises assets that the couple that were acquired during the course of their marriage or were treated by the couple as being jointly owned. It does not matter whether the property was purchased by one party or jointly; if it was acquired between the date of the marriage and the date of separation or treated as though it was jointly owned, it is matrimonial property.

Examples of assets that might be classed as matrimonial property include the following:

The matrimonial home
Shares and other investments
Bank accounts
Vehicles
Businesses
Furniture

What Is Non-Matrimonial Property?

Non-matrimonial property typically comprises assets that were acquired by one of the spouses before they got married or were gifted to one spouse during the course of the marriage.

Examples of assets that might be classed as non-matrimonial property include the following:

Property purchased by one of the parties prior to the marriage. A key exception to this is if that property was used as the marital home. In that case, the property would be classed as a matrimonial asset.
Gifts or inheritance given exclusively to one party.
Businesses established before the marriage.

Why Is The Distinction Important?

The distinction between matrimonial and non-matrimonial assets is crucial when it comes to dividing a couple’s assets for the purposes of a divorce financial settlement.

Matrimonial assets form part of the pot to be divided between the couple. As we have explained, the matrimonial assets might be divided equally between the parties, or the parties might receive unequal shares. The Court’s overriding concern is to ensure that the division of the matrimonial assets is fair.

When seeking to reach a fair settlement, the Court will take into account various factors, such as the following:

The parties’ respective incomes.
The parties’ respective earning potential.
The parties’ financial needs.

On the other hand, non-matrimonial assets do not typically form part of the pot to be divided between the spouses when they divorce. There are two key exceptions to this general rule, which are as follows:

• The Matrimonial Assets Are Insufficient To Meet The Parties’ Needs

If the Court does not feel that the matrimonial assets are enough to meet both parties’ financial needs, it may add non-matrimonial assets into the spot to be shared.

• The Non-Matrimonial Assets Have Become Intertwined With The Matrimonial Assets

If an asset that would typically be classed as a non-matrimonial asset has become mingled with matrimonial assets or used jointly by the couple, the Court may decide that it should form part of the pot to be divided between the parties.

Can You Sell Your Property Before A Divorce Settlement UK?

If the property is in your sole name, there is nothing preventing you from selling it before your divorce settlement has been finalised. However, if the property is deemed to be a matrimonial asset, the money you receive for it will still be included in the settlement pot.

If the property is in the joint names of you and your spouse, you will only be able to sell it if they agree. Selling the property before your divorce is finalised can make sense in some cases but can lead to complications in others. Our family law solicitors will assess the circumstances of your separation and advise on the best course of action.

At Birch & Co., we firmly believe that family law matters are best resolved by agreement between the parties, without the Court’s involvement, wherever possible. If you and your ex-partner can reach an agreement on the issues arising from your divorce without litigation, you can spend the time and money you would have spent on Court proceedings on building your future.