If there are young children, the law requires the courts to first consider how they will be housed following their parents’ separation. And while there is no legal presumption that both parents should live in a house they own, if the assets are available, it may be considered unfair for them not to be shared in a way that allows both parties to live in a home they own if they wish.

In other cases, the judge may decide that the more financially vulnerable party who earns less than their partner should be allowed to keep the existing home with the benefit of the better rate, because it is more affordable for them.

Or they could determine that the house should be sold, because one party who wants to keep the house can afford to take on the current mortgage, but cannot increase their borrowing further to release some equity in the home as a deposit for the other party.

Going to court is certainly a riskier option, and there is no certain outcome that can be guaranteed at the outset. And time is not on anyone’s side, as the lengthy backlogs in the family court system can substantially delay a final settlement. By then, the mortgage and housing markets could be in a very different place. 

Moving forward 

Continuing uncertainty around interest rates and the wider housing market is creating a new financial reality for separating couples, making it much more difficult for them to reach agreement and move on with their lives. 

Further interest rate rises and the ongoing cost of living crisis will mean that people have to look at how they split their finances and mortgages in different and more challenging ways. 

Nicky Hunter is a partner at Stowe Family Law