Family Home 

It is usual to discuss arrangements for the family home in mediation .  Decisions about the family home can be the most important decisions you will make.  Using the mediation process allows you each to listen to each others future and currnet  plans and develop realstic options for the future.

If you are separating one of the major decisions which needs to be made is usually what will happen to the family home.

This is often an emotional issue. There can be a  lot of relationship history behind when and why the house was bought .  Moving is also a big change . If there are children involved there can also be knock on effects for schooling. The house might double up as a family business or workplace or might be in a great location for work. Separation brings about consequences for all of these issues but with discussion and planning the effects can be managed.

These are some of the points you might think about :

1. Can either of you afford to stay ? This may involve not just taking over the existing mortgage but -either now or later on - buying the other person out of their interest in the house. A good stating point is often to talk to your existing mortgage provider or an independent mortgage broker who can tell you what your options are. You will also need to consider the consequences to your monthly budget and there is a useful website : www.moneyadviceservice.org.uk which can assist you in considering a realistic budget
2. If you plan to leave the house do you understand what it means for your name  to remain on the mortgage? How long will that continue for ? Will the house be sold soon or when your children have grown up ? At what point do your children become old enough for the family home to be sold ? Will being paid out later and  not  living in the house have tax consequences for you ? Where will you live in the short ,medium and long term ?
3. How do you calculate the value of the house ? This is easier if the house is being sold. Then it will involve getting market values from estate agents and picking the most suitable and marketing the property. The value used is usually the sale price less any mortgages and mortgage penalties and the costs of the conveyancer and estate agent. There are rarely tax charges in selling the family home but if this is also a business eg a farm or has a lot of land tax consequences  will have to be checked. The costs of sale are usually between 1-3% of the sale price. 

All of these issues can be discussed in mediation.

Mediation is a flexible process which starts with all options you wish to include being considered and tested for how realistic they are . 

Further information is often identified as being helpful to the process. 

Please read “Preparation  for financial mediation .”This will highlight what documents you will find helpful. 

Mediation can also bring in independent experts such as financial advisors and accountants to help you both.

If you would like to discuss further please call 07843069381. 

If you have any questions or would like to make an appointment to discuss this area, please call us on 07843069381 07843069381 or use our contact form.