OLS Solicitors Blog
Understanding Property Adjustment Orders in Divorce Proceedings
When Is a Property Adjustment Order used?
One of the biggest assets to deal with on divorce is often the matrimonial home. As a result, many disputes between divorcing spouses focus on what should happen to the property after separation.
In some cases, couples are able to agree between themselves how the property should be dealt with. Where agreement cannot be reached, the court may need to step in and decide the most appropriate outcome.
What is a Property Adjustment Order?
A Property Adjustment Order in the UK is a legal order that allows the court to redistribute property and other financial assets between spouses or civil partners following a divorce or the dissolution of a civil partnership.
This type of order can be applied for during divorce proceedings or after the divorce has concluded. Legal advice should always be sought to ensure your interests are properly protected.
The primary purpose of a Property Adjustment Order in divorce proceedings is to achieve a fair division of assets, taking into account the financial needs and contributions of both parties, as well as the needs of any children.
Factors the Court Will Consider
When deciding whether to make a Property Adjustment Order, the court will consider a range of factors, including:
- Each party’s financial needs, obligations, and resources
- Financial and non-financial contributions made by each party to the family
- The welfare of any children, including their housing needs
The court has wide discretion and may order an immediate transfer of property or postpone any transfer until a later date, such as when children reach the age of 18 or finish full-time education.
Why Would I Need a Property Adjustment Order?
A divorcing couple will usually need a Property Adjustment Order to give legal effect to any financial agreement involving the family home.
If the parties cannot agree on how the property should be divided, the court will impose a financial settlement. Even where agreement is reached, court approval is required for the agreement to become legally binding.
Common Ways Couples Deal With the Family Home
The two most common approaches to dealing with the matrimonial home are:
- Property Transfer
Ownership of the property is transferred to one spouse. This can happen immediately or at a later date, for example when children reach adulthood or complete full-time education.This may also involve transferring or refinancing a mortgage from joint names into one person’s sole name. - Property Sale
While not strictly a Property Adjustment Order, selling the family home is one of the most common solutions.Any agreement to sell should be recorded in a Consent Order to prevent either party from withdrawing at a later stage.
What Types of Property Orders Can the Court Make?
The court has wide powers to make orders relating to property in divorce proceedings. The most common Property Adjustment Orders include:
- Delaying the sale of the family home (for example, until children finish education)
- Transferring ownership of the property from one party to the other
- Selling the property and dividing the proceeds fairly
Specific Types of Property Orders
In addition to standard Property Adjustment Orders, the court may also make more specific orders, including:
Mesher Order
A Mesher Order postpones the sale of the family home until a specific “trigger event” occurs. This commonly allows one party (often the primary carer) to remain in the property with the children until they reach 18 or complete full-time education.
Martin Order
A Martin Order goes further than a Mesher Order by postponing the sale of the property indefinitely. The occupying party may remain in the home for life, subject to trigger events such as remarriage or voluntarily leaving the property.
How Do I Get a Property Adjustment Order?
There are two main ways to obtain a Property Adjustment Order:
Consent Orders
Where both parties agree on how the property should be dealt with, the agreement can be recorded in a Consent Order. The Property Adjustment Order will form part of this document and must be approved by the court to become legally binding.
Family Court Proceedings
If agreement cannot be reached and mediation is unsuccessful, an application to the Family Court will be required. The court will then impose a decision by way of a Financial Order, which may include a Property Adjustment Order.
Does the Court Need to Be Involved?
Yes. The court must always be involved in some capacity when making a Property Adjustment Order.
Even where both parties agree, the Consent Order must be approved and sealed by the court before it becomes legally binding and enforceable.
Who Needs to Apply for a Property Adjustment Order?
A Property Adjustment Order is suitable for couples who want to place property arrangements into a legally binding financial order, preventing future claims by either party.
Traditionally, these orders are drafted by a family or high-street solicitor as part of a wider Consent Order.
However, to reduce costs, it is possible to obtain a fixed-fee Property Adjustment Order with the support of our family lawyers at OLS Solicitors.
