If you and your other half buy a property as a joint ownership then decide to separate, what happens to the home you bought together?
For many couples the instinct is to sell the joint property as soon as possible, divide any equity and move on with their separate lives.
This is quite common – in fact, estate agents estimate divorce and separation account for roughly 10% of all property sales!
For others, however, it may be in their best interests to keep the property.
There are a variety of reasons for this but often the process can seem quite complex – thankfully, we’re here to help you understand all of your options and outcomes before reaching an agreement with your partner.
The first thing to consider is that, individually, partners may not currently be able to afford to sell the joint property then buy the kind of property they would like.
Moreover, if the relationship has ended amicably, it may be possible to continue living under the same roof until a time when there are enough savings in the piggy bank for both to move on.
This was certainly a trend we saw during the recession.
Another scenario could see a couple agreeing to move to their own individual rented accommodation but keep their joint property as a money-making investment.
This is more likely to be the case if there are no children involved, the split has been amicable and the property is in an up-and-coming area and likely to increase in value.
At this point, it’s time to tackle the legal eagle jargon, and this is something you have to agree before buying the property so, take a deep breath . . .
There are two ways to own a home jointly in Scotland.
Joint Owners:
Is the legal term for owning a property equally between two people.
It also means if one of you suddenly upsizes to the big real estate in the sky, the other inherits that share of the property, regardless of any will.
The other way to jointly own a property is to be:
Common Owners:
This means each owns a share in the property.
Sometimes one person owns a larger share than the other. If one partner passes on, their share passes on to whoever is named in their will.
If you want to add your partner you can change from sole ownership to Joint Owners or Common Owners.
Couples in Scotland who are divorcing, meanwhile, can choose to change from Joint Owners to Common Owners.
Yes, legalese lingo can certainly be a little bamboozling: joint ownership is a complicated process – so don’t be tempted to try to sort it all out on your own.
It pays to get professional advice, so why not click on the Mortgage Advice button on s1homes?