The Lemon Fool

Just been talking about two friends who have divorced subject to them splitting their family and holiday home up. Both are, or were, joint tenancies. It’s an understatement to say that things are not going well! However if one of the two died, then the survivor would presumably become sole owner of the properties which the other would presumably not want to happen.

I assume that there is some flaw in my above logic so could someone please explain where I’ve gone wrong?

Thanks

If a couple is splitting up (married or not) it makes sense to sever the joint tenancy and own property assets as tenants-in-common. That can be done unilaterally by either party simply by serving notice in writing on the other party.

Can I add another queery to this thread. A friends daughter is now separated from her husband and presumably a divorce will happen. She has two young children. Up to now both have been contributing to the mortgage by paying into an account for shared bills, but the husband has had a breakdown, has moved away and lost his job, without any clear idea when he will get another. The grandparents will pay the mortgage (they can afford it) but only if the quity in the house reflects the fact that the son in law is no longer willing or able to pay his share.

How can such an arrangement be set up? Presumably by making the house into tenants in common with their revised equities agreed? Can this be enforced?

Lootman wrote:If a couple is splitting up (married or not) it makes sense to sever the joint tenancy and own property assets as tenants-in-common. That can be done unilaterally by either party simply by serving notice in writing on the other party.

- can you simply serve notice if there is a mortgage in play?
- does land registry get involved?
- will changing the ownership trigger any capital gains or stamp duty implications?

paul wrote:

Lootman wrote:If a couple is splitting up (married or not) it makes sense to sever the joint tenancy and own property assets as tenants-in-common. That can be done unilaterally by either party simply by serving notice in writing on the other party.

- can you simply serve notice if there is a mortgage in play?
- does land registry get involved?
- will changing the ownership trigger any capital gains or stamp duty implications?

The mortgage isn't really affected in the way it would be if an owner was taken off the title.

The LR doesn't have to be informed but it is prudent to do so, just in case one owner dies and the surviving owner tries to sell the place as a sole owner.

No CGT or SDLT issues that I know of.

Nimrod103 wrote:Can I add another query to this thread. A friends daughter is now separated from her husband and presumably a divorce will happen. She has two young children. Up to now both have been contributing to the mortgage by paying into an account for shared bills, but the husband has had a breakdown, has moved away and lost his job, without any clear idea when he will get another. The grandparents will pay the mortgage (they can afford it) but only if the equity in the house reflects the fact that the son in law is no longer willing or able to pay his share.

How can such an arrangement be set up? Presumably by making the house into tenants in common with their revised equities agreed? Can this be enforced?

Either party can effect the switch to TIC but it will default to 50/50 ownership since that is what a joint tenancy has to be with 2 people.

Changing the percentage ownership to something else would require negotiation and agreement, such as would typically happen during a divorce process.

Obviously a lot depends on personal circumstances. Often it was the mother and the kids that kept occupancy of the home.

Benefits often covered the interest but I think things have changed now. I think it might be a loan of some sort.

Hopefully they can come up with a mutual agreement but often it turns into a bun fight to the death over aunties Christmas jug that was in the loft the last 7 years.

I suspect that when the divorce is agreed or forced this will be sorted.

Lootman wrote:If a couple is splitting up (married or not) it makes sense to sever the joint tenancy and own property assets as tenants-in-common. That can be done unilaterally by either party simply by serving notice in writing on the other party.

Although that's often the case it's by no means a universal rule. I've dealt with divorce cases where my client's other half (usually, but not always the husband) is a lot older or has serious health problems, and in those cases it sometimes makes sense to take a decision based on actuarial grounds and leave things as they are!

It's tough to predict what might happen if one person passes away. I'm not an expert, but it's probably best to consult with a divorce specialist. They can give you the lowdown on all the legal stuff.

Twitterpane wrote:It's tough to predict what might happen if one person passes away. I'm not an expert, but it's probably best to consult with a divorce specialist. They can give you the lowdown on all the legal stuff.

Tardy divorce answer.

T7

terminal7 wrote:

Twitterpane wrote:It's tough to predict what might happen if one person passes away. I'm not an expert, but it's probably best to consult with a divorce specialist. They can give you the lowdown on all the legal stuff.

Tardy divorce answer.

T7

But very Intelligent

DrFfybes wrote:

terminal7 wrote:
Tardy divorce answer.

T7

But very Intelligent

You may wish to say that, but I could not possibly comment.

T7

terminal7 wrote:

DrFfybes wrote:
But very Intelligent

You may wish to say that, but I could not possibly comment.

T7

Methinks DrF was tongue in cheek there and just omitted “artificial”.