What happens to the family home after divorce?

For many couples, the family home is far more than bricks and mortar. So it is completely natural for both spouses to worry about what will happen to the family home after divorce.

Understanding your options for the family home after divorce can help you make decisions with confidence and reduce some of the stress during an already difficult time.

Whilst every situation is different, there are some common routes forward and practical steps that can help you protect your future, as Justin Creed, family law solicitor and legal director in Lodders Family law team, explains.

Is the family home always shared equally?

The family home is often one of the biggest assets in a divorce. For many people, it is also the most emotionally charged; it is where children feel settled, where support networks and schools are nearby, and where day-to-day life is familiar. Courts understand this and take the impact on both spouses, and any children, very seriously when deciding what should happen next.

There are a lot of myths around divorce, including the common belief that everything is split 50/50, but that isn’t always the case. In England and Wales, the law focuses on fairness rather than strict equality. This means the starting point is often a roughly equal division, but the actual outcome depends on each couple’s circumstances.

Key elements the court considers include:

• Each person’s financial needs
• Whether children live in the home and need stability
• The value of other assets
• Each spouse’s income and earning capacity
• Each spouse’s mortgage capacity
• Housing needs now and in the near future

A fair outcome doesn’t necessarily mean the family home is sold and that both partners receive the same share. The court aims to achieve stability and fairness, rather than following a strict formula.

Common options for the family home after divorce

There is no “one size fits all” answer, but there are several options that regularly work well for divorcing couples. The right one for you will depend on finances, children’s needs and what each spouse wants for the future.

1. Selling the home and splitting the proceeds

This is often the most straightforward option for the family home after divorce. Selling provides a clean break and gives both spouses the chance to move on and buy or rent new properties independently.  How the proceeds are split will depend on affordability, needs and any agreements reached.

This option is especially common if the home is too expensive for one person to maintain alone or if neither spouse wishes to stay.

2. One partner buys out the other

If one person wants to stay in the home, perhaps to give the children stability or because it suits their work and support network, they can buy out the other’s interest. Affordability is key here. The spouse who remains must be able to take on the mortgage (if any) and other financial responsibilities.

The process usually involves:

• A valuation of the property
• Reaching an agreement on each person’s share
• Refinancing or transferring the mortgage
• A formal transfer of ownership

3. Keeping the home for now (Mesher or Martin Orders)

Sometimes, especially where children are involved, immediately selling the family home after divorce isn’t the best option. There are court orders designed to delay the sale until a certain event happens – usually when the youngest child turns 18 or finishes full-time education.

• A Mesher Order allows the parent caring for the children to remain in the home until a defined trigger point. At that stage, the home is sold and the proceeds divided at that point.
• A Martin Order is similar but is used where there are no dependent children. It allows one spouse to stay in the home for life or until they remarry, with the sale postponed.

These orders can be helpful when families want stability. However, they do tie both parties to the property for a longer period, which can sometimes limit financial independence.

4. Offsetting the home against other assets

In some cases, one partner may keep the family home after divorce, whilst the other receives a larger share of pensions, savings or investments. This can work well in situations where one spouse values staying in the property more than receiving other assets. Offsetting requires careful financial advice, particularly around pensions, which can be worth far more than they initially appear.

What if the home is owned in one person’s name?

Even if the home is legally owned by just one spouse, the other may still have a claim. The law looks at the needs of both parties, the roles they have played in the marriage and the welfare of any children – not just whose name is on the deeds.

If you are worried about your rights because the property isn’t in your name, or if you are the legal owner and want to protect the property, it is important to take advice early.

Can you decide without going to Court?

Absolutely. Many couples reach an agreement through negotiation, mediation or solicitor led discussions. Court should be a last resort, not a first step. Agreeing things between you (with guidance) almost always feels more positive, keeps legal costs down and helps everyone move forward with less conflict.

Once an agreement is reached, it is essential to have it recorded in a legally binding consent order, so both parties are protected. Read our legal guide on how to have a pain-free divorce for more information.

Taking the next steps

Deciding what happens to the family home after divorce can be one of the hardest parts of the process. However, with the right legal advice and clear information, it becomes much easier to make decisions that protect your wellbeing, your finances and your future.

At Lodders, we help client’s work through these decisions every day. Whether you are hoping to stay in the family home, exploring your options, or simply need clarity about your rights, our Family law solicitors offer friendly and practical advice.

If you are facing divorce and are worried about what will happen to your home, please get in touch.