Selling a house during divorce or separation is rarely straightforward but knowing what to expect makes the process far less stressful. This guide explains how selling a jointly owned property works in England and Wales: from how you own the home, to the mortgage, to how the sale proceeds are divided on completion.
If you have questions about your own situation, our conveyancing team is always happy to talk them through.
Joint tenants or tenants in common: how you own the property matters
This is worth establishing at the outset, and many couples are not certain which applies to them.
Joint tenants means you own the whole property together, without defined shares. If one of you dies, the other automatically inherits the whole of it, regardless of what a will says.
Tenants in common means you each own a distinct share, often but not always equal, and each share can be left to someone else by will.
Where a couple owning as joint tenants separate, it is common to sever the joint tenancy so that the property is held as tenants in common instead. This protects your share in the event that something happens to either of you before matters are finalised. It is a straightforward step and we can deal with it for you.
If you are unsure how the property is held, we can check the title at HM Land Registry.
Can one person sell a jointly owned house?
No. Where you’re both named on the title, both signatures are needed on the contract and the transfer. One owner can’t sell a jointly owned property alone.
If one of you won’t cooperate, that’s a matter for a family solicitor rather than a conveyancer. A court can make an order for sale, but that’s a separate process and you’d need family law advice. Once it’s resolved, your conveyancer can move the sale forward.
Can you sell your house before the divorce is finalised?
Yes. There’s no requirement to wait until the divorce is concluded. Many couples sell while matters are ongoing, because the proceeds are needed to fund two new homes.
The timing does affect how the money is handled, though, and that’s governed by your financial settlement rather than the conveyancing. If your settlement isn’t agreed yet, speak to your family solicitor before exchange of contracts. We’ll need to know what’s been agreed about the proceeds before completion.
What happens to the mortgage when you separate?
The mortgage doesn’t change when you separate. Until the property is sold or the mortgage is transferred, you both remain jointly and severally liable. This means the lender can pursue either of you for the full amount, regardless of who lives there or who’s paying.
On a sale, the mortgage is paid off from the proceeds on completion in the usual way. If there’s a shortfall (negative equity), you’ll need to agree between you how it will be covered, and we’ll need to know before contracts can be exchanged.
How are the sale proceeds divided?
On completion, the sale proceeds are used to:
- Pay off the mortgage
- Pay the estate agent’s commission
- Pay conveyancing fees
What’s left is the net balance. How that’s divided is a matter for your settlement or court order. Before we can distribute it, we’ll need clear written instructions from both of you, or a copy of the order. We can’t divide the proceeds based on an assumption about what was intended.
We raise this early on purpose. Completion day isn’t the time to discover you each understood the position differently.
Keeping the house: transfer of equity
Selling isn’t the only option. If one of you wants to stay in the home, a transfer of equity removes the other person from the title.
This depends on the lender agreeing to release the departing owner from the mortgage, which in turn depends on the remaining owner being able to afford it alone. It’s worth speaking to your lender or a mortgage broker early. If they decline, a sale may be the only realistic route.
Can we both use the same conveyancer?
Usually, yes. Selling a jointly owned property is a single transaction, so where you both agree to sell, we can act for you both.
If a conflict arises between you, such as a disagreement about whether to sell or how to divide the proceeds, we may not be able to act for both of you. We’d let you know promptly if that happened. This is different from your family solicitors, who must always be separate.
Talk to us about selling your home
Selling a house during divorce or separation involves more than an ordinary sale, but with clear instructions and early planning it can run smoothly. Whether you’re selling, severing a joint tenancy or arranging a transfer of equity, our team can guide you through each step.
Get in touch today for a free, no-obligation conveyancing quote.
