Date: 12 October 2011
Author: Elizabeth Sneade

Usually when a couple decide to separate or divorce one person moves into alternative accommodation, with or without the children. When the house sells each person takes their share of the available equity and both then buy new properties. At the moment, with houses not selling and raising finance tricky at best, the inability to liquidate what is usually a couple’s largest asset means that they are forced to remain living together longer than planned.

Some couples have other options as they have money saved, perhaps for their children’s education. That money is being utilised sooner rather than later to enable one half of the couple to move out before the property is sold. 

Where couples are staying under one roof, it will be a stressful time because the factors which are contributing to the split do not go away even if they have already agreed how their financial assets/liabilities are to be divided. The added pressure of not being able to move forward with their plans and sell the family home creates addition friction.

Some commentators have referred to these cases as needing a mid-nuptial settlement, i.e. a set of rules to enable day-to-day living to take place whilst not undermining the long-term financial settlement. This may be something as simple as agreeing a chore schedule for the house and agreeing rules about whether new partners can come to the house and if so, when.

Another practical issue is that if one person is relying upon the other’s adultery for the divorce application they cannot live together for more than six months before the Decree Nisi is applied for. This means that either couples have to go through the rigmarole of showing that they are no more than ‘flat-mates’ within the family home – so no joint cooking, cleaning or sharing of bedrooms - or delay the divorce proceedings.

The other issue easily forgotten is that houses are harder to sell than before, but pension scheme values are also distorted. Pensions often form the basis of a financial settlement and for someone in their late 40s/early 50s and the current ups and downs of the economy are making it hard to calculate future benefits.

If you find yourself in this tricky position and would like advice about the best way forward in your particular circumstances, please contact a member of the Ashton KCJ family team.